Berkshire Hathaway has lagged as the broader market hits new highs. Is the financial giant stalling?
The first pattern on today’s chart is the series of lower highs since early May. Those may suggest its long-term uptrend is fading.
Second is the pair of large solid candles on October 10 and October 16. Prices have failed to get above those ranges, which may reflect a lack of buyers. Also notice how the $496 area was support earlier this month but has now morphed into apparent resistance.
Traders may next eye the August 22 weekly close of $489, which the conglomerate has recently stayed above. Would a close below that level trigger a breakdown?
Third, the 50-, 100- and 200-day simple moving averages (SMAs) have converged in the last two weeks. That could also reflect a weakening long-term trend.
Third, MACD is falling and the 8-day exponential moving average (EMA) is below the 21-day EMA. That may reflect growing bearishness in the short term.
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