Berkshire Hathaway has a huge Cup & Handle. $BRKB – May 17, 2023
This is Scott with your Chart of the Day. I want to take a look at Berkshire Hathaway ( BCBA: BRKB ). This is the “B” class of Berkshire Hathaway ( BCBA: BRKB ). Of course, BRKA ( VIE: BRKA ) is $500,000.00 a share. I don’t know too many people that can afford too many of those shares, so let’s take a look at the “B” class. Because although this one is cheaper than the other one, the patterns are quite similar, and I am a pattern trader.
What I like about this pattern here, if I zoom in, you can see it’s got a little bit of a cup pattern and then a high handle. You can see this little bit of a flag here, and then you can see it kind of tightening here, a little bit of a short handle. But if I zoom out you can see an even bigger cup pattern, right there. And so what I like about this is the fact that we are seeing patterns within patterns. That kind of gives me a little more confirmation on patterns when I can see those happening.
So I think that it is definitely worth watching this chart for a potential breakout of this cup and handle, within a cup and handle pattern. So what I would do on Berkshire Hathaway ( BCBA: BRKB ) is probably have an alert right around that $330.00 range, that’s right “thereish”. And that will tell you that the stock is breaking out against this kind of short area of consolidation, short area of resistance.
You want to see that breakthrough and break out, coming on higher than average volume. Today’s move, just above the 8-day exponential period moving average did have a nice pickup in volume, so that is what I want to see for follow-through to the upside. A breakout above 330.00, coming on volume for Berkshire Hathaway ( BCBA: BRKB ). And that would definitely confirm this potential cup and high handle, within a longer cup and handle.
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