BRK-B dominated by bulls lifting the market higher throughout the day
Berkshire Hathaway Inc. (BRK-B) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BRK-B finished the month -3.81% lower at 178.51 after gaining $1.32 (0.74%) today, underperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 177.22, the stock confirmed its breakout through the previous session high after trading up to $1.89 above it intraday.
Daily Candlestick Chart (BRK-B as at Jun 30, 2020):
Tuesday's trading range has been $2.59 (1.47%), that's below the last trading month's daily average range of $4.02. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BRK-B. Prices continued to consolidate within a tight trading range between 174.63 and 179.72 where it has been caught now for the whole last trading week.
Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on June 2nd, BRK-B actually gained 2.62% on the following trading day.
Buyers managed to take out the key technical resistance level at 177.93 (now S1), which is likely to act as support going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 179.72 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 174.63 where further sell stops could get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Berkshire Hathaway. Out of 258 times, BRK-B closed lower 53.88% of the time on the next trading day after the market condition occurred.