Today we will take a look at Berkshire Hathaway's price action.
On this chart, we can see two major technical elements.
1) The current ascending trendline started at the bottom of the pandemic sell-off. While the price stays above that line, we should be open to bullish movements coming.
2) The current consolidation. Those structures are great situations to look for the beginning of new impulses. Berkshire has been moving sideways for the last 280 days, and a few days ago, we saw a new ATH, and now the restest is happening.
That's why I have defined an activation level. IF the price makes a new ATH, I expect a bullish movement towards the fibo extensions. An invalidation level in case that happens is below the current correction around 268.77
In case everything goes as planned, my estimate is a 150 days movement towards the target.
IF the activation level is never reached because the price keeps falling, then that's great "your order, or view" was never executed, and you stayed on the sideway. However, if the price reaches the activation level and goes below the corrective structure, that's why you use a stop loss, and you need to securely leave the market, paying your stop loss (which is never higher than 3% of my trading capital)
Thanks for reading, feel free to share your view and charts in the comments!