Welcome to this update-analysis about BERKSHIRE and the recent events, how it is approaching the critical range, what we can expect the next times, and how to handle upcoming situations accordingly. The stock confirmed the before mentioned possible movement and bounced at its lower boundary to move upsides testing the remaining strong resistance-cluster which can lead to a possible bear-flag and its confirmation, if you did not watch this analysis already I highly recommend it to you for having a full-depth-overview about the established situation. As the stock is approaching these important levels there are some meaningful signals I detected determining the further outcomes of the stock and where the journey can head. As the main stock market has decently recovered from the corona-breakdowns this year there are still stock remaining which trading way below the established highs and looking rather weak and then in a good shape to form new highs therefore it is significant to assess these stocks individually and only consider these on the long-side which providing right conditions.
Looking at my chart you can watch there that BERKSHIRE is now approaching the huge confluence-cluster marked in red which is also matching with the rising resistance line marked in light-blue, therefore, building up coherent resistance in this structure, in this case there is a high possibility given that the stock also confirms it as resistance to move lower and testing remaining supports on validity. As you can watch marked in my chart the next important support is the middle-line of the channel in blue and the structure consisting of the 800-EMA marked in black and the 100-EMA marked in green where the stock can bounce and confirm as support, this movement is crucial here because it needs to hold otherwise when the stock falls below this level the possibility for more downside increases seriously and should not be ignored as the stock can move on to confirm the huge possible bear-flag-formation marked in my chart but when this does not happen and the stock holds the level this can turn to the upside when bulls are strong enough which can invalidate the bearishness, reaction in range will decide the ongoing movement.
In this manner, thank you for watching the analysis, support for more market insight and all the best.
"The high destiny of the market is to differentiate rather than to speculate."
Information provided is only educational and should not be used to take action in the market.
• Wave 2 is typically 50%, 61.8%, 76.4%, or 85.4% of wave 1
• Wave 3 is typically 161.8% of wave 1
• Wave 4 is typically 14.6%, 23.6%, or 38.2% of wave 3
• Wave 5 is typically inverse 1.236 – 1.618% of wave 4, equal to wave 1 or 61.8% of wave 1+3
• Wave B = 50%, 61.8%, 76.4% or 85.4% of wave A
• Wave C = 61.8%, 100%, or 123.6% of wave A
• If wave C = 161.8% of wave A, wave C can be a wave 3 of a 5 waves impulse. Thus, one way to label between ABC and impulse is whether the third swing has extension or not
For more of this: https://elliottwave-forecast.com/elliott-wave-theory/