Major Top for BRK.B
Updated
About every decade BRK.B has a major top. Drawing a fib from the Dot.com correction in 1999 the 2.618 called the top of the Great Financial Crisis in 2007, and the 4.414 called the next major top in 2014. Drawing a fib from the GFC the 2 was almost hit during the top in 2014, and 4.414 called $294 as the next decade's cycle top, which has been rejected twice this year. The four major tops are actually spaced apart by about seven years (1999, 2007, 2014, 2021).
The daily chart has formed a triple top over the past six months. Two shooting star candles confirmed that $294 is seemingly insurmountable resistance, the first on May 10 and the second on November 8. Although this may continue to consolidate for months or longer, the upside is very limited, the opportunity cost is high, and an eventual correction can be expected.
The daily chart has formed a triple top over the past six months. Two shooting star candles confirmed that $294 is seemingly insurmountable resistance, the first on May 10 and the second on November 8. Although this may continue to consolidate for months or longer, the upside is very limited, the opportunity cost is high, and an eventual correction can be expected.
Comment
11/26: Go in the direction of the gap.Comment
The rejection of $300 was a textbook upthrust. I'm more convinced than ever that this is a long term distribution phase that will break down.Comment
Broke to the upside.Comment
In what began as a strong trading day that gapped up, BRK.B routed in the afternoon and formed another ominous gravestone doji. If tomorrow opens lower, this could paint another evening star formation hearkening back to May 9-11.
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