Berkshire Hathaway's stock recently displayed encouraging growth, with a notable bullish surge on August 7th. After reaching its zenith in March 2022, the stock suffered a 28% drop. By October 2022, the stock steadied at $260 and recently made a bullish stride, briefly outdoing its past record. However, this new high was marginal and fleeting, as the stock soon reverted below its former peak.
A build-up of momentum led to this breakout, with the stock's inflection point being the $321 resistance, which then became support.
This pivotal level has consistently posed challenges for the stock, given its proximity to its all-time high. It took 18 months for the stock to muster the courage to challenge this robust resistance.
The stock's recent surge might be attributed to its favorable Q2 earnings report, where it reported earnings of 4.62 against the predicted 3.87. Notably, the daily 20 simple moving average stands slightly under the stock's current $350 price, potentially acting as a vital support.
If the stock maintains this position, it may pave the way for future growth, potentially setting new record highs and establishing a lasting bullish trend.
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@AlloysK, we are trend followers which means we abide by the mantra of cutting your losers, letting your winners run and compounding winning positions only. We don't set TP levels. We follow the trend with a TSL. Our holding period is typically 12 to 18 months before we rebalance or the TSL is hit. Keep the questions coming and appreciate the feedback.