Berkshire Hathaway Stock Aiming for Recovery

Berkshire Hathaway (Class A NYSE: BRK.A – Class B NYSE: BRK.B) is currently the seventh largest company in the S&P 500 Index by market capitalization. The company ,lead by Warren Buffett, has averaged an annual growth in book value of 19.0% to its shareholders since 1965.

Berkshire Hathaway Class B NYSE: BRK.B is one of the main stock within the Financial Select Sector SPDR Fund XLF. Year-to-date, the whole financial sector is still pointing in the negative side and not seeing any profit yet.

The 5 most weighted stocks in XLF are Berkshire, JP Morgan, Bank of America, Wells Fargo and Citibank . They will be reporting earning tomorrow and next week which may shift things around in the coming few weeks to end up with a green summer.

The stock market is turning bullish as Technology & Consumer Discretionary sectors already leading the move higher, so we need to take a look at the technical Elliott Wave structure of BRK.B to help identify the path for the Financial sector.

Since 01/29/2018 peak, Berkshire Hathaway did a corrective 7 swings structure ( Double Three ) which reached it’s equal legs area around $185.68 – $180.64. Up from there the stock started bouncing higher and it’s expected to resume the rally to new all time highs with a minimum target at $225 – $238 area.

Berkshire Hathaway BRK 4H 7.12

Recap:

Berkshire Hathaway is looking for at least a 50% bounce to correct the decline from January peak which may be followed later on by a higher move to take that peak and open a new daily cycle to the upside.

If you’re interested in getting more insights about the Financial sector and it’s related stocks then try our services 14 days to learn how to trade our blue boxes using the 3, 7 or 11 swings sequence. You will get access to our 78 instruments updated in 4 different time frames, Live Trading & Analysis Session done by our Expert Analysts every day, 24-hour chat room support and much more.

Source : https://elliottwave-forecast.com/stock-market/berkshire-hathaway-stock-aiming-recovery/