BRK-B climbs to highest close since June 8th
Berkshire Hathaway Inc. (BRK-B) Technical Analysis Report for Jul 29, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BRK-B ended Wednesday at 196.41 gaining $2.29 (1.18%), slightly underperforming the S&P 500 (1.24%). Today's close at 196.41 marks the highest recorded closing price since June 8th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 194.46, the share confirmed its breakout through the prior session high after trading up to $2.18 above it intraday.
Daily Candlestick Chart (BRK-B as at Jul 29, 2020):
Wednesday's trading range has been $2.90 (1.49%), that's slightly below the last trading month's daily average range of $3.07. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BRK-B.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 197.23 (R1).
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for Berkshire Hathaway. Out of 400 times, BRK-B closed higher 51.00% 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 56.75% with an average market move of 0.39%.