BRK-B closes above its opening price after recovering from early selling pressure
Berkshire Hathaway Inc. (BRK-B) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
BRK-B ended the month 9.67% higher at 195.78 after gaining $1.48 (0.76%) today, slightly underperforming the S&P 500 (0.77%). Trading up to $1.73 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. 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 31, 2020):
Friday's trading range has been $2.67 (1.37%), 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 higher than usual for BRK-B.
Prices are trading close to the key technical resistance level at 197.23 (R1).
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the nearby swing high at 196.67 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 192.25 where further sell stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for Berkshire Hathaway. Out of 487 times, BRK-B closed higher 50.10% 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 56.47% with an average market move of 0.41%.