BRK-B closes above its opening price after recovering from early selling pressure
Berkshire Hathaway Inc. (BRK-B) Technical Analysis Report for Jul 30, 2020 | by Techniquant Editorial Team
BRK-B ended Thursday at 194.30 losing $2.11 (-1.07%), underperforming the S&P 500 (-0.38%). Trading up to $1.18 lower after the open, Berkshire Hathaway managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on July 22nd, BRK-B gained 0.60% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BRK-B as at Jul 30, 2020):
Thursday's trading range has been $2.32 (1.2%), that's slightly below the last trading month's daily average range of $3.03. 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.
After trading down to 192.25 earlier during the day, the share bounced off the key technical support level at 192.68 (S1). The failure to close below the support might increase that levels significance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 196.67 where further buy stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Berkshire Hathaway. Out of 443 times, BRK-B closed higher 58.69% 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 55.08% with an average market move of 0.42%.