Watch These Berkshire Hathaway Price Levels After Shares Close at Record High

Key points to remember

• Shares of Berkshire Hathaway closed at a record high on Monday, boosted by gains at some of the conglomerate’s largest holdings.

• The stock broke out of a symmetrical triangle, a chart pattern that suggests a continuation of the current uptrend.

• The measuring principle projects a short-term price target for the stock of $465, while a bar pattern projects a longer-term target of around $500.

• On retracements, Berkshire shares could find support around $415 from the upper trendline of the symmetrical triangle and near a multi-month rising trendline at $390.

Shares in Warren Buffett’s Berkshire Hathaway (BRK.A, BRK.B) closed at a record high on Monday, boosted by gains in some of the conglomerate key holdings, including Apple (AAPL), American Express, (AXP), Chevrons (CVX) and Occidental Petroleum (OXY). Investors generally consider the performance of the company’s stock, which trades at about 23 times analysts’ full-year forecasts operating result projections, as an indicator of the health of the U.S. economy because of its diversification in a wide range of industrial sectors.

Berkshire Hathaway shares gained 2.4% to end Monday’s session at $434.42.

Amid stocks moving to record highs, we’ll take a closer look at the techniques on the weekly chart of Berkshire Hathaway and identify important levels to watch.

Exit from the symmetrical triangle

Since it bottomed out halfway between weeks 50 and 200 moving averages (MA) In early October last year, Berkshire shares were in a steady upward trend. More recently, the price has exceeded the norms symmetrical trianglea chart pattern that indicates a continuation of the current uptrend.

It is important to note that the initial breakout of the pattern occurred at the weekly high trading volume since late February, suggesting a buying conviction behind this move. Additionally, Relative Strength Index (RSI) sits just below overbought levels to confirm the stock’s strong price momentum.

Watch these price levels for further increases

Below, we will use two different technical analysis techniques to predict short-term and long-term price targets. These levels help us determine a general area on the chart where Berkshire stock can move higher and meet resistance if the price continues its upward trend.

Short term price target

To forecast a potential short-term price target, we can use the measuring principle. To do this, we calculate the distance between the two trendlines of the symmetrical triangle near their widest point and apply this amount to the breakout zone. For example, we add $50 to $415, which projects a target at $465.

The story continues

Long term price target

Investors can speculate on a longer term price target by using an overlay of past price charts. Price actionIt works by taking the bar pattern from the uptrend that preceded the symmetrical triangle and applying it to the most recent one. swing lowIn this case, we take the bullish bar pattern between October 2023 and February of this year and align it with…