Basic Takeaways

• Shares in Berkshire Hathaway closed at a record high on Monday, boosted by gains in some of the group’s key holdings.

• The stock broke out of a symmetrical triangle, a chart pattern that suggests a continuation of the current uptrend.

• The gauge principle predicts a short-term price target on the shares of $465, while a bar pattern predicts a longer-term target around $500.

• During reversals, Berkshire shares may find support around $415 from the top trend line of the symmetrical triangle and near a multi-month uptrend line at $390.

Shares in Warren Buffett’s Berkshire Hathaway (BRK.A, BRK.B) closed at a record high on Monday, boosted by gains in some of the of the conglomerate key holdings, including Apple (AAPL), American Express, (AXP), Chevron (CVX), and Occidental Petroleum (OXY). Investors typically look to the company’s stock performance, which trades at about 23 times analysts’ full-year total operating profit forecasts, as an indicator of the health of the US economy due to diversification across a wide range of industries.

Shares of Berkshire Hathaway added 2.4% to end Monday’s session at $434.42.

Amid the stock’s move to record highs, we’re taking a closer look at technically on the Berkshire Hathaway weekly chart and spot important levels to watch out for.

Split from the symmetrical triangle

Since it’s halfway between week 50 and week 200 moving averages (MAs) in early October last year. Berkshire shares are moving steadily higher. More recently, the price has broken out of the textbook symmetrical trianglea chart pattern indicating a continuation of the current uptrend.

Importantly, the initial breakout from the pattern occurred at the weekly high transaction volume since late February, suggesting buying conviction behind the move. In addition, the relative strength index (RSI) is just below overbought levels to confirm strong price momentum in the stock.

Watch these price levels for further upside

Below, we will use two different technical analysis techniques to predict short-term and long-term price targets. These levels help us identify a general area on the chart where Berkshire’s stock might climb and meet resistance if the price continues to rise.

Short term price target

To predict a possible short-term price target, we can use the principle of measurement. We do this by calculating the distance between the two trend lines of the symmetrical triangle near their widest point and applying that amount to the breakout area. For example, we add $50 to $415, which predicts a target of $465

The story continues

Long-term price target

Investors can speculate on a longer-term price target using a chart overlay of the previous one price action. This works by taking the bar pattern from the uptrend that preceded the symmetrical triangle and applying it to the most recent waved low. In this case, we take the bullish bar pattern between October 2023 and February of this year and align it with the April low, which suggests a possible upside target around $500.

Watch these key repositioning areas

Investors looking for a key Pull back level should watch the $415 area, where Berkshire shares will likely find buying interest near the top trend line of the symmetrical triangle. A more significant reversal could see the stock retrace a multi-month uptrend voltage line around $390, with this location also within striking distance of the 50-week MA.

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