Berkshire Hathaway Inc. New Price Analysis Powered by AI

Berkshire Hathaway (BRK-B): Key Levels Align for Tactical Bounce—Buy Opportunity Near $503 Support

Daily Chart (Jan–May 2025):

Strong Uptrend to Early April: From late January to mid-March, BRK-B moved from ~$460 to over $535, representing a ~16% rally. High-volume surges (March 24–April 4) signal enthusiastic buy participation, confirming the uptrend.
Sharp Correction (April 4–7): Abrupt drop from ~$532 to $493 on 2 days of extreme volume, suggesting institutional profit-taking or stop-loss cascades. However, the decline found support ~490 multiple times (April 7, 8, 10) and triggered strong bounces, indicating buyers ready at dips.
Volatility and Mean Reversion Mid-April–May: Price alternates between 510–535, demonstrating increased volatility but also the resilience of uptrend structure. Each rejection near ~$535 gives way to significant demand ~500-510.

Intraday Chart (May 21–23, 2025):

Short-term Mild Downtrend: Price peaked intraday at 507.4 on May 21, then steadily declined with lower highs/ lower lows to 503.57. Minor recoveries during the day lacked momentum.
Consolidation Zone: Afternoon of May 22 shows a range between 504–506.3, before the latest closing at 503.57, near session lows—reflecting waning bullishness short-term.

Volume At Support/Resistance: Recent declines (May 15–22) have occurred on below-average volume, especially compared to the spike on the late-April sell-off. This indicates selling pressure, while persistent, isn’t driven by panic; buyers could re-enter soon at technical supports.
RSI (Inferred): Not directly given, but after 3 failed attempts to break/hold above 535 in April–May, and repeated fades to low-500s, it’s likely RSI shifted from overbought to neutral. Unless continued heavy selling appears, oversold conditions may develop near 495–500.
MACD (Inferred): The MACD line has likely crossed below the signal in late April and moved further negative post mid-May, supporting the mean-reverting, slightly bearish drift currently observed.
ATR/Volatility: Spikes in the daily high-low range in April/May signal expanding volatility. However, the current day’s trading range is compressed (507.3–503.5), hinting potential for a breakout soon as price contracts.

Resistance: $507–510 (minor), $520 (major), $535 (major, triple-top)
Support: $500–502 (psychological, recent low), $493–495 (April low & bounce zone, strong institutional interest), $490 (last-ditch, multi-bounce floor)
Current Price: $503.57

Double/Triple Top at 535: The repeated rejections off $535 in April–early May signal supply zone & possible reversal—but each subsequent decline has found higher low support, not breakdown, so the uptrend is intact.
Falling Wedge (May): Daily chart for May shows consolidating lower highs / lower lows, a bullish reversal pattern if buyers enter above $500.
Intraday Candles: Today’s closing candle is a long lower wick just above $503.50—potential for demand absorption here.

50 EMA/MA (Inferred): Given the strong uptrend, the 50-day MA is likely between $505–510. Price is slightly below this average now—typical for retest & potential bounce areas.
200 EMA/MA (Inferred): Estimated near $480–485, well below current price and indicative of long-term trend support.

Volume by Price: Most recent high-volume days occurred near $530–535 and again near $492–502, reinforcing these as supply/demand clusters.
Order Book Indication (Approximate): Minor support 503–505, major 495–500, resistance 510–515 short term.

Bollinger Band Squeeze (Inferred): The current contraction in daily and intraday ranges suggests an impending volatility expansion. Price near the lower band (at/just below 503–504) enhances odds for mean reversion bounce.

Recent Rally (Apr 4 low at 490.3 to Apr 26 high at 537.6): Key retracement levels: 38.2% (~517), 50% (~514), 61.8% (~508). Price is currently below 61.8% retracement, which sometimes triggers oversold bounces—especially as multiple candles test this area without breaking down decisively.

Stock Specifics: BRK-B is known for resilience, mean reversion, and broad market proxy. No evidence of fundamental panic—this appears to be a technical rotation.
Seasonality: May–June generally choppy in major indices, short-term traders may exploit volatility but longer-term trend remains up.

Bullish Arguments:

Bearish Arguments:

Momentum is negative short-term (below 50 MA, MACD negative, lower highs/lows).
Triple-top at 535 unresolved; failure to reclaim 510 soon could attract further profit-taking.
If $500 fails, would open path to 495/490 quickly (high-volume prior bounces).

Statistically, with support clustering, volatility squeeze, and recent inability of sellers to break $500–503, odds favor a short-term bounce. On balance, risk/reward is better for a tactical long.
BUY ZONE: Open buy orders as close as possible to $503 (current price) or bid slightly below down to $501 for tactical advantage.
EXPECTED UPSIDE: Revert to $508–510 within 24 hours (first resistance & 61.8% Fib retrace), potentially higher if buying accelerates on news or market rally.
STOP-LOSS ZONE: Place tight stops below $499. If $500 breaks on volume, exit—path to $495/490 is open.

ACTION: BUY, open at $503.5 (or bid for $502). Target $509–510 (first resistance & mean reversion).

Summary:

Trend intact, mean reversion probable, indicators suggest bullish bounce from support likely within next 24 hours. Optimal risk/reward favors taking a tactical long position now with $509 as take profit and $499 as stop.