Main Takeaways
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Berkshire Hathaway Inc. shares closed at a record high on Monday, boosted by gains in some of the company’s key holdings.
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The stock broke through a symmetrical triangle, a chart pattern that indicates a continuation of the current uptrend.
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The measuring principle projects a near-term price target for the stock at $465, while the bar pattern projects a long-term target at around $500.
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During corrections, Berkshire shares may find support around $415 from the upper trendline of the symmetrical triangle, and near the multi-month uptrend line at $390.
Shares in Warren Buffett’s Berkshire Hathaway (BRKA, BRKP) closed at a record high on Monday, supported by gains in some conglomerate Major holdings, including Apple Inc.Apple company), American Express, (XP), Chevron (CVX), and Occidental Petroleum (Oxy). Investors typically look at the performance of the company’s shares, which are trading at about 23 times analysts’ full-year expectations. Operating profit Expectations, as an indicator of the health of the US economy due to diversification Across a wide range of industries.
Berkshire Hathaway shares rose 2.4% to end Monday’s session at $434.42.
As the stock moves towards record highs, we’ll take a closer look at Technologies On the weekly chart of Berkshire Hathaway and identify important levels to watch out for.
exit from the symmetrical triangle
Since hitting bottom midway between week 50 and week 200 Moving averages In early October of last year, Berkshire shares were on a steady upward trend. More recently, prices have risen from their record highs. equilateral trianglea chart pattern that indicates continuation From the current uptrend.
More importantly, the initial breakout of the pattern occurred at the weekly high. Trading volume Since late February, indicating a buying conviction behind the move. Furthermore, Relative Strength Index (RSI) It is located just below overbought levels to confirm strong price momentum in the stock.
Watch these price levels amid further upside
Below, we will use two different technical analysis techniques to predict short-term and longer-term price targets. These levels help us identify a general area on the chart where Berkshire shares may rise and face resistance If the price continues in the upward trend.
Short term price target
To predict a potential short-term price target, we can use: Principle of measurementWe do this by calculating the distance between the two trend lines in the symmetrical triangle near their widest point and applying this sum to the breakout area. For example, we add $50 to $415, which predicts a target of $465.
Longer term price target
Investors can speculate on a long-term price target by using a chart overlay of past prices. Price movementThis is done by taking the bar pattern from the uptrend that preceded the symmetrical triangle and applying it to the most recent one. low swingIn this case, we take the bullish bar pattern between October 2023 and February of this year and align it with the April low, which indicates a potential upside target at around $500.
Watch these key correction areas.
Investors are looking for a key Swipe back The $415 level should be watched, as Berkshire shares are likely to find buying interest near the upper trendline of the symmetrical triangle. A more significant pullback could trigger a rethink of a months-long uptrend. trend line Around $390, with this position also close to the 50-week moving average.
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