BRK-B finds support at 50-day moving average
Berkshire Hathaway Inc. (BRK-B) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
BRK-B ended the week -0.26% lower at 226.80 after gaining $0.33 (0.15%) today on low volume, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.97 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on February 6th, BRK-B actually lost -0.97% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (BRK-B as at Feb 14, 2020):
Friday's trading range has been $1.62 (0.72%), that's below the last trading month's daily average range of $2.46. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BRK-B.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top and the Takuri Line which are both known as bullish patterns.
After trading as low as 225.52 during the day, the share found support at the 50-day moving average at 226.06. After having been unable to move above 227.40 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 227.14.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 228.84 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 225.13 where further sell stops could get triggered. With prices trading close to this year's high at 231.61, upside momentum might accelerate should Berkshire Hathaway be able to break out to new highs for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 50" stand out. Its common bullish interpretation has been confirmed for Berkshire Hathaway. Out of 38 times, BRK-B closed higher 55.26% of the time on the next trading day after the market condition occurred.