BRK-B runs into sellers again around 200.31
Berkshire Hathaway Inc. (BRK-B) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BRK-B ended Tuesday at 200.24 gaining $0.98 (0.49%), slightly outperforming the S&P 500 (0.36%). Today's close at 200.24 marks the highest recorded closing price since June 8th. Trading up to $0.86 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on July 31st, BRK-B gained 1.78% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (BRK-B as at Aug 04, 2020):
Tuesday's trading range has been $2.20 (1.11%), that's below the last trading month's daily average range of $3.18. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BRK-B.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
After having been unable to move above 200.68 in the previous session, Berkshire Hathaway ran into sellers again around the same price level today, missing to move higher than 200.31.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 200.68 where further buy stops could get activated. Trading close to June's high at 203.33 we might see further upside momentum if potential buy stops at the level get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) above 70" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Berkshire Hathaway. Out of 46 times, BRK-B closed higher 56.52% of the time on the next trading day after the market condition occurred.