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On Monday, Berkshire Hathaway shares reached a record high. This occurred after the business revealed its fourth-quarter results over the weekend, showing a significant 70% increase in operating income compared to the previous year. Investors are clearly pleased with the performance of Warren Buffett’s company!
Alright, here’s the rendition, incorporating a human element to ensure it resonates organically with an English-speaking demographic keen on technical evaluation:
It’s important to highlight that this surge transpired on the highest daily trading volume since the December “quadruple witching” occurrence, implying institutional players are engaging in the purchasing activity. The Relative Strength Index (RSI) validates the optimistic price momentum, with figures exceeding the 70 benchmark, yet also signals that overbought circumstances could be materializing.
Let’s employ technical assessment to anticipate possible upward price objectives and pinpoint crucial support zones to observe during any downturns.
## Chart-Derived Upward Objectives
### Ascertained Movement Price Objective
The measured move methodology, also recognized as the measuring principle, anticipates potential upward objectives by scrutinizing the height of the ascending triangle formation to foresee a potential upward shift. To implement this on Berkshire’s chart, we ascertain the distance between the two trendlines of the pattern at its broadest point and append that sum to the breakout juncture. For instance, we add $70 to $485, projecting an objective of $555.
### Bar Pattern Price Objective
Bar pattern evaluation anticipates potential upward objectives by examining prior trends to forecast how subsequent directional shifts might unfold. Applying this instrument, we extract price bars encompassing the stock’s elevated trend subsequent to a prior ascending triangle on Berkshire’s chart and reposition them from the upper trendline of the present formation. This projects an objective of roughly $560.
## Crucial Support Zones to Monitor During Downturns
Ultimately, during any pullback, investors should meticulously observe the pivotal $485 level. Those seeking re-entry junctures on a decline might discover value around the upper trendline of the ascending triangle, which could transform from previous resistance to future support.
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The writer possesses no shares cited herein.
