BZ Chart Of The Day: Berkshire Hathaway Breaks Critical Support

BZ Chart Of The Day: Berkshire Hathaway Breaks Critical Support

Shares of Berkshire Hathaway Inc. (NYSE: BRK-B) have broken an important support level. That means there’s a chance they will continue to fall even further.

Support is a large concentration of investors who are looking to purchase shares for at, or close to, the same price. As you can see on the following chart the $275 level has been support for Berkshire.

But now the stock is trading below it.

This could illustrate a bearish dynamic. It may show that the investors who created the support are gone. They have either finished or canceled their orders.

With this large amount of demand taken out of the market, the stage is set for a move lower. Sellers will be forced to accept reduced prices and this could force BRK.B into a downtrend.

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Photo: Immersion Imagery via Shutterstock

Posted In: Short IdeasTechnicalsTrading Ideas