BRKB trade ideas
Berkshire Hathaway - Breakout to where?Post Trump's election BRK has broken out to the upside but my Elliott wave count suggests that it may not have much further to go with some upside resistance provided by a combination of the 1.618 Fib extension, the parallel channel and a Andrews Pitchfork median line. It all suggests to me that the post election market euphoria may be short lived.
BRK.B Head and Shoulders1. BRK.B has made a very clear head and shoulders
2. The fractal pattern of Sep 15 to Jan 16 fits quite well, and even offers two touches to 61.8% support
3. The company is largely in defensives, hence great upside is unlikely. The Summer S&P dip will be reflected here.
4. Warren and Charlie, God bless them, are not getting any younger.
Now is the time for long-term investors to take some of their BRK.B profits, and for traders to consider a summer short.
BRK.B Berkshire as market barometer.BRK.B has followed the market higher since Feb 11th, I am setting alerts early. We will see if the market correction since the beginning of 2016 was only a dip to be bought, or an early warning sign of a bearish trend unfolding in the months to come. Similar health checks can be done with SPY:IWM, COPX, FDX, TLT, HYG, FXY, UVXY.......
Real Breakout or very dangerous False Break ?$BRK.B gapped up above a daily downtrend line yesterday following Warren Buffet's letter.
The trend line, that started back in November 2015, was broken but the price was rejected from the 200 SMA line and the completion of bearish Bat pattern.
Now, $BRK.B price needs to prove that the breakout is real.
1. It must close the week above the daily downtrend line.
2. It should overcome the 200 SMA line to signal stronger bullish move.
If $BRK.B will decline below the daily downtrend line, it will be a bearish signal that can be saved only if the price will find support near 130 - The meeting zone of 2 daily SMA lines.
So where do you think BRK.B is heading? and what does it means for the stock markets?
Tomer, The MarketZone.net
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Monthly BRK/A study - Possible Parabolic Climax?Just an interesting study using arcs and Fib retracements. Using BRK for an overall proxy for our markets to gain insights as to if we may be nearing a generational top.
This chart suggests to me that we may be closer to some sort of top than we are to the beginning of a new secular bull market as some have suggested.
