Watch These Berkshire Hathaway Stock Price Levels After Warren Buffett Announces Retirement

Berkshire Hathaway shares will be on the radar screen of investors, when veteran investor Warren Buffett said at the Congress annual meeting on Saturday that he plans to step down as CEOs later this year.

The 94 -year -old Buffett, who has led the company for 60 years, said he would hand over the reins to Vice Chairman Greg Abel, who has long been recognized by Berkshire as Berkshire’s successor. Buffett’s retirement marks the end of an era that has strengthened its place as an investment icon and American success story after replacing a textile company in a trillion dollar group with successful businesses in many areas.

Before the announcement of Buffett on Saturday, Berkshire shares climbed a new record high level on Friday. After the closure of the previous week, the stock has increased by 19% since the beginning of the year and traded 35% more in the last 12 months. Comparatively, the benchmark S&P 500 has lost 3% and has added 11% respectively, respectively, in the same period.

Below, we closely look at the technology on Berkshire’s chart and identify that investors at major price levels will be probably looking.

Ascending triangle breakout

Berkshire’s shares broke over the upper trendline of a ascending triangle at Friday’s trading session, potentially set the platform for a continuity.

Meanwhile, the relative power index (RSI) confirms a rapid price speed with a reading above the 50 range, although the indicator sits below the overbott level, providing the stock a sufficient room for the higher trend.

Let’s apply several technical analysis techniques to the chart of Berkshire, which helps us identify major overhead areas worth watching, while two important support levels can also be detected that can come to play during future pullbacks.

Major overhead area to see

Measured trick target

To project an inverted target using the measured trick technique, we calculate the distance between the two trendline of the ascending triangle near the introduction of the pattern and add that amount to Friday’s breakout point. Therefore, we add $ 50 to $ 535, which estimates the target of $ 585, about 8%from the closing price of Friday.

Bars pattern target

Investors can also use Bars Pattern Tools to project a rapid target. When implementing the technology in the chart of Berkshire, we extract the price bar, including the trend of stock from early February to the end of March and reply to them from Friday’s breakout point.

It is a target of about $ 606 above around 12% above Friday. We chose this previous step as higher because it follows a breakout from the earlier ascending triangle on the chart, providing information about how a uniform uptrend can be an uptrend if the price action rhymes.

Important support level for surveillance

The ascending may trigger an initial pullback in a close stock below the top trendline of the triangle. The region on the chart can provide support near the period of trading activity formed within the major early march peaks and patterns.

Finally, a more important retracement can see Berkshire’s shares of low support shares at $ 490. Investors can look for entry points to the region near a remarkable initial march swing during a dip towards the 50-day moving average.

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As this article was written, the author has none of the above securities.