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Forecast For Berkshire Hathaway? Sunny Skies And A Bullish Falling Wedge

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Berkshire Hathaway Inc. (NYSE: BRK-B) was put on our watch list in late February after a review of the Monthly chart showed it was at a pullback on a long term trend line, and as long as the long term support that held in 2009 and 2012 continued to stay above that trend line, it would appear Bullish.

The Daily Chart immediately revealed a Bullish RSI divergence, while the stock price was moving into testing shorter term resistance. It was put on watch for a daily upside breakout of the down trend line that would make a nice Bullish setup.

The Bullish Hammer Candle Pattern on the longer term Monthly chart, long term trend support, Fibonacci support at $122.76 (0.236) and shorter term RSI divergence sealed the deal to get on board with Warren and ride the next wave up. We are now past Easter and the prevailing winds are taking us into April but we don't see showers in the forecast for Berskire Hathaway; we see the sun and it's shadow reveals a Bullish Falling Wedge.

brkb_3_30_16_monthly.png

For those that are unfamiliar, a wedge usually lasts between one and three months, slants against a prevailing trend and usually means a continuation pattern of an existing trend. Referring to our current Monthly chart, it appears that as long as it hangs in there, we'll get a Bullish Breakout as of today's close!

The second chart is a Daily, showing a breakout of a years worth of long term resistance.

brkb_3_30_16_daily.png

Often times once an investment breaks out it comes back to test the original break of that resistance. The Point and Figure Chart that takes a longer term view, suggests a vertical price objective for Berkshire Hathaway stock of $179.00. Get your sunglasses on.

John Butcofski and Kimberly Swartz

Captain John Charts

Posted-In: Long Ideas Technicals Movers & Shakers Trading Ideas General

 

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