Chart of the Week: Berkshire Hathaway Class B
It’s time for our chart of the week, and this week we’re gonna be profiling Berkshire Hathaway Class B; Warren Buffett’s B share companies. Happy birthday to Warren. His birthday was last Friday, August 30. Happy to share some of my insights on this particular chart with all of you.
The stock has been on fire
So interestingly enough, this stock has been on fire. This stock’s been strong since the breakdown in early August. It’s really gone parabolic. I mean, amazing that a stock like this that Warren Buffett has been managing – or head of – for so long tends to go parabolic. It hit $405 or so on August 5 and in about a month, the stock has gone up close to 18% – and again, in just a month’s time. Pretty amazing run.
And even as the markets tanked really hard on September 3 – yesterday – we see that Berkshire Hathaway did manage to put in what’s called a Dogy or evening star perhaps – shooting star – on this particular pattern. It’s not bullish. It’s very bearish right now.
It’s due for some downside
But we wouldn’t necessarily say that the chart is bearish right now. What we would say is it’s probably due for some downside. We think the next pullback here would probably be a good spot to add some Berkshire. Probably not right now, but if it pulls back to, say the $458 – 462 level, that would probably be a good spot to add some shares. It may go sideways for a little bit longer. But I think over the long term, the stock is going to be moving much higher. Look at the heavy volume it had last week. And then also on Wednesday.
MACD is overbought. Money flow is strong. RSI is overbought, and probably ready to come back down. That’s why I said it probably would be a good spot to wait for a pullback on this before adding some shares.
Berkshire Hathaway probably going to make its run up towards $500 before too long. And again maybe just a pullback to let these moving averages catch up.
The 20 day moving average is at $447 right now, with the stock at $470. That’s a good 30 points away from the 20 day moving average. Even the 50 day moving average is quite a bit lower down at $433.
Maybe the price comes back down a bit to meet one or two of these moving averages and that would be your sign to go ahead and snap up some shares.
Keep the Berkshire B shares on your radar screen, maybe on your watch list. Maybe wait for a little bit of a pullback.
That’s Berkshire!
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