Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Is Natural Gas Price Ready For An April Rally? - 8th Apr 20
Market Predictions And The Business Implications - 8th Apr 20
When Will UK Coronavirus Crisis Imrpove - Infections and Deaths Trend Trajectory Analysis - 8th Apr 20
BBC Newsnight Focuses on Tory Leadership Whilst Boris Johnson Fights for his Life! - 8th Apr 20
The Big Short Guides us to What is Next for the Stock Market - 8th Apr 20
USD Index Sheds Light on the Upcoming Gold Move - 8th Apr 20
The Post CoronaVirus New Normal - 8th Apr 20
US Coronavirus Trend Trajectory Forecast Current State - 7th Apr 20
Boris Johnson Fighting for his Life In Intensive Care - UK Coronavirus Crisis - 7th Apr 20
Precious Metals Are About To Reset Like In 2008 – Gold Bugs, Buckle Up! - 7th Apr 20
Crude Oil's 2020 Crash: See What Helped (Some) Traders Pivot Just in Time - 7th Apr 20
Was the Fed Just Nationalized? - 7th Apr 20
Gold & Silver Mines Closed as Physical Silver Becomes “Most Undervalued Asset” - 7th Apr 20
US Coronavirus Blacktop Politics - 7th Apr 20
Coronavirus is America's "Pearl Harbour" Moment, There Will be a Reckoning With China - 6th Apr 20
Coronavirus Crisis Exposes Consequences of Fed Policy: Americans Have No Savings - 6th Apr 20
The Stock Market Is Not a Magic Money Machine - 6th Apr 20
Gold Stocks Crash, V-Bounce! - 6th Apr 20
How Can Writing Business Essay Help You In Business Analytics Skills - 6th Apr 20
PAYPAL WARNING - Your Stimulus Funds Are at Risk of Being Frozen for 6 Months! - 5th Apr 20
Stocks Hanging By the Fingernails? - 5th Apr 20
US Federal Budget Deficits: To $30 Trillion and Beyond - 5th Apr 20
The Lucrative Profitability Of A Move To Negative Interest Rates - Pandemic Edition - 5th Apr 20
Visa Denials: How to avoid it and what to do if your Visa is denied? - 5th Apr 20 - Uday Tank
WARNING PAYPAL Making a Grab for US $1200 Stimulus Payments - 4th Apr 20
US COVID-19 Death Toll Higher Than China’s Now. Will Gold Rally? - 4th Apr 20
Concerned That Asia Could Blow A Hole In Future Economic Recovery - 4th Apr 20
Bracing for Europe’s Coronavirus Contractionand Debt Crisis - 4th Apr 20
Stocks: When Grass Looks Greener on the Other Side of the ... Pond - 3rd Apr 20
How the C-Factor Could Decimate 2020 Global Gold and Silver Production - 3rd Apr 20
US Between Scylla and Charybdis Covid-19 - 3rd Apr 20
Covid19 What's Your Risk of Death Analysis by Age, Gender, Comorbidities and BMI - 3rd Apr 20
US Coronavirus Infections & Deaths Trend Trajectory - How Bad Will it Get? - 2nd Apr 20
Silver Looks Bearish Short to Medium Term - 2nd Apr 20
Mickey Fulp: 'Never Let a Good Crisis Go to Waste' - 2nd Apr 20
Stock Market Selloff Structure Explained – Fibonacci On Deck - 2nd Apr 20
COVID-19 FINANCIAL LOCKDOWN: Can PAYPAL Be Trusted to Handle US $1200 Stimulus Payments? - 2nd Apr 20
Day in the Life of Coronavirus LOCKDOWN - Sheffield, UK - 2nd Apr 20
UK Coronavirus Infections and Deaths Trend Trajectory - Deviation Against Forecast - 1st Apr 20
Huge Unemployment Is Coming. Will It Push Gold Prices Up? - 1st Apr 20
Gold Powerful 2008 Lessons That Apply Today - 1st Apr 20
US Coronavirus Infections and Deaths Projections Trend Forecast - Video - 1st Apr 20
From Global Virus Acceleration to Global Debt Explosion - 1st Apr 20
UK Supermarkets Coronavirus Panic Buying Before Lock Down - Tesco Empty Shelves - 1st Apr 20
Gold From a Failed Breakout to a Failed Breakdown - 1st Apr 20
P FOR PANDEMIC - 1st Apr 20
The Past Stock Market Week Was More Important Than You May Understand - 31st Mar 20
Coronavirus - No, You Do Not Hear the Fat Lady Warming Up - 31st Mar 20
Life, Religions, Business, Globalization & Information Technology In The Post-Corona Pandemics Age - 31st Mar 20
Three Charts Every Stock Market Trader and Investor Must See - 31st Mar 20
Coronavirus Stocks Bear Market Trend Forecast - Video - 31st Mar 20
Coronavirus Dow Stocks Bear Market Into End April 2020 Trend Forecast - 31st Mar 20
Is it better to have a loan or credit card debt when applying for a mortgage? - 31st Mar 20

Market Oracle FREE Newsletter


Berkshire Hathaway Stock Chart Technical Analysis

Companies / Company Chart Analysis Feb 08, 2015 - 03:11 PM GMT

By: Austin_Galt


Berkshire Hathaway Inc (BRK.A) is involved in many diverse businesses including insurance, freight rail transportation, utilities and energy. It is listed on the New York Stock Exchange (NYSE) with a market capitalisation of around $350billion. Price last traded at $224,880. To learn more about the company, please visit its website at

Let’s take a bottom up approach beginning with the daily chart.


There was some interesting price action to start the month of February. That involved price coming down and clipping the December 2014 low of $215,500. It was only a marginal new low at $215,151. This was a false break low and price has exploded higher which is common behaviour after false break lows.

This also sets up a bullish double bottom as it is with the trend. It is with the trend because it occurred above the previous swing low which was set in October 2014. These double bottoms generally provide the springboard for price to launch to new highs and while it hasn’t happened yet it does indeed look likely.

This recent February low found support at the 100 period moving average which is denoted by the red line. This moving average also held the previous swing low on October 2014.

The Parabolic Stop and Reverse (PSAR) indicator shows price busted resistance given by the dots on the charts. So a bullish bias is now in play.

The Relative Strength Indicator (RSI) is trending up and a new high looks like it may set up a triple bearish divergence. That normally leads to a significant decline and that is my expectation here.

The Moving Average Convergence Divergence (MACD) indicator is trending up but it is generally in a weak position dominated by a pattern of lower highs and lower lows. This coming high also looks set to be accompanied by a bearish divergence here.

Finally, a common topping pattern consists of three consecutive higher highs. I like to call this a “three strikes and you’re out” top and that looks set to play out here. We already have the first two highs and now just await the third and final high to be put in place.


I have drawn an uptrend line connecting the August 2014 and October 2014 lows. This trend line provided support on the recent move down with price clipping this trend line before reversing back up. Nice.

The recent low also came in above the previous swing high set in September 2014 which is denoted by the horizontal line. This keeps the uptrend in a strong position.

A new high is likely to be accompanied by a bearish divergence in both the RSI and MACD indicator.


I have drawn several trend lines along bottoms. Each consecutive trend line is becoming steeper which is a sign of the maturation of the bull trend. We now have five steeper trend lines which is generally the limit. This bull trend is not only mature, it is downright old.

Price already has broken below the last trend line and price going to new highs now is the last hurrah. The gravedigger move! I expect come the end of February price will be back below this fifth consecutive trend line.

The Bollinger Bands show price has moved away from the upper band and a move to new price highs now looks to be one last attempt to get back to this upper band.

A new monthly high now looks set to show a triple bearish divergence in both the RSI and Momentum indicator. And this is the monthly chart no less.

Finally, the MACD indicator looks to be threatening a bearish crossover.

Let’s wrap up the analysis by looking at the big picture with the yearly chart.


It is clear that a massive bull market is in play as per the pattern of higher highs and higher lows. I now expect a high over the coming days that will put in the next yearly higher high. Then a big move down should be in store that eventually sees a higher low put in place.

I have drawn an Andrew’s Pitchfork with the middle channel beginning at the 2000 low, the upper channel at the 2007 top and the lower channel at the 2009 low. It is quite common to see top do an “up and over” of the upper trend line and that seems to be playing out here too.

The coming top looks set to show a bearish divergence on the RSI so considering this is the yearly chart then a substantial move down is likely.

Once the final top is in place I expect price to come all the way back to the lower trend line and just as the top is a false break of the upper trend line so too is the low likely to be a false break of the lower trend line.

I have also added Fibonacci retracement levels of the move up from 2009 low to recent high. Now keep in mind I think the final high is yet to be seen but it shouldn’t overly affect this analysis. I favour the final pullback low being around the 61.8% level at $130,911.

I have drawn a green highlighted circle which denotes the area I favour for the final pullback low. The timing is in 2016 and a touch under the 61.8% Fibonacci level and a touch under the lower Andrew’s Pitchfork trend line. Let’s see!

Betting against Warren is generally a mug’s game but I’m not playing the man. I’m playing the chart.

Disclosure – I have no financial interest in BRK.A.

By Austin Galt 

Austin Galt is The Voodoo Analyst. I have studied charts for over 20 years and am currently a private trader. Several years ago I worked as a licensed advisor with a well known Australian stock broker. While there was an abundance of fundamental analysts, there seemed to be a dearth of technical analysts. My aim here is to provide my view of technical analysis that is both intriguing and misunderstood by many. I like to refer to it as the black magic of stock market analysis.

My website is 

© 2015 Copyright  The Voodoo Analyst - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules