Stock of the day: Berkshire Hathaway

Yesterday’s Fed announcement brought us today’s  ‘dump USD and pump stocks’ sentiment. The USD is weakening and futures, as well as the vast majority of stocks, are climber higher.

Today, we’re taking a first-time look at Berkshire Hathaway. This company requires no introduction. All you need to know about it is; Warren Buffet!

The reason we haven’t mentioned this company before is mostly because, since May, its price has been moving sideways. BRK was closed in a rectangle between the support on the 273 USD and the resistance on 292 USD. For months, we were bouncing from one side to another. This ended on Tuesday, a day before the Fed’s announcement.

The price broke the upper line of the rectangle and brought us a long-awaited trading signal. This signal is to go long. The positive sentiment stays here, as long as the price stays above the 292 USD support. The price coming back down below that can be a signal of a false breakout and a very strong sell signal – but chances for that are now limited.