BRK-B closes within prior day's range after lackluster session
Berkshire Hathaway Inc. (BRK-B) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BRK-B ended the week 3.36% higher at 174.93 after edging lower $0.01 (-0.01%) today on low volume, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $1.65 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BRK-B as at May 22, 2020):
Friday's trading range has been $1.91 (1.09%), that's far below the last trading month's daily average range of $3.26. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BRK-B. Prices continued to consolidate within a tight trading range between 172.31 and 176.87 where it has been caught now for the whole last trading week.
Five candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the Dragonfly Doji which are both known as bullish patterns, two bearish patterns, the Hanging Man and the Northern Doji and one neutral pattern, the Doji. The last time a Northern Doji showed up on April 9th, BRK-B lost -2.62% on the following trading day.
Prices are trading close to the key technical resistance level at 176.72 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 176.87 where further buy stops could get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Dragonfly Doji" stand out. Its common bullish interpretation has been confirmed for Berkshire Hathaway. Out of 1 times, BRK-B closed higher 100.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 100.00% with an average market move of 0.69%.