Looking at the Berkshire Hathaway’s Class B stock (NYSE: BRK.B) from the technical side, it continues to trade within a slightly falling channel formation from around the beginning of February. But if we look inside that channel, we can see that in the end of March, BRK.B failed to reach the March 8th lows, at 197.00 and reversed back to the upside. The share price is close to the upper bound of the above-mentioned channel, but before we get comfortable with examining higher levels, we would need to wait for the stock to exit the formation first. Thus, we remain cautiously-bullish for now.
As mentioned above, a break above the upper side of the falling channel and a move above the 207.54 barrier, marked by the highest point of March, might start raising more interest among some investors and allow the stock to move further in the northern direction, potentially bypassing the 209.11 mark, which is February’s high. The increased buying activity might drag the share price to the 210.76 hurdle, which is the high of December 7th. At that point we may see the buying easing off a bit, which could allow the stock to retrace slightly back down. But if such a retreat is just seen as a good opportunity for investors to step in again, we may see another surge in the share price. That’s when BRK.B might be heading towards the 213.70 resistance, marked by the November 21st intraday swing high.
On the downside, a drop below the 202.88 support area, marked by the lows of April 3rd and 5th, could temporarily spook the buyers from the market. Such a move may open the door for a further price-depreciation, potentially leading towards the psychological 200.00 zone, which supported the stock from falling on March 29th. But even if investors do not see an opportunity to jump in there, BRK.B could continue drifting south, where the next possible area of support might be around the 198.18 hurdle, which marks the lows of March 25th and 27th.
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