BRK-B closes higher for the 2nd day in a row
Berkshire Hathaway Inc. (BRK-B) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BRK-B ended Monday at 184.13 gaining $1.23 (0.67%), strongly outperforming the S&P 500 (-0.94%). Today's close at 184.13 marks the highest recorded closing price since June 10th. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (BRK-B as at Jul 13, 2020):
Monday's trading range has been $2.51 (1.37%), that's below the last trading month's daily average range of $3.30. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for BRK-B.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Shooting Star. The last time a Shooting Star showed up on March 27th, BRK-B actually gained 1.96% on the following trading day.
Prices are trading close to the key technical resistance level at 186.70 (R1).
Though the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. Its common bearish interpretation has been confirmed for Berkshire Hathaway. Out of 38 times, BRK-B closed lower 52.63% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after three trading days, showing a win rate of 65.79% with an average market move of -0.16%.