Stock of the day: Berkshire Hathaway

On the 11th of October, I conducted an analysis on Berkshire Hathaway, noting that the stock was moving within a sideways trend, as indicated by black lines on the chart. At that time, I mentioned that we were awaiting a breakout, with an upward breakout indicating a buy signal and a downward breakout pointing towards a sell signal.

The breakout occurred to the upside, which was expected, especially since a similar pattern emerged earlier this year and also resulted in an upward breakout. As of now, we have a fresh buy signal confirmed by yesterday’s price action. The sentiment remains positive as long as the price stays above the upper black line. A drop below this line would be concerning, but the chances of that happening seem limited. The higher probability lies with the continuation of this upswing, signaling further bullish movement in the coming sessions.