Berkshire Hathaway (BRK.B) has pulled back about 38.2% from its 2025 high, a key Fibonacci retracement level that’s often seen as potential support in strong uptrends. It’s also sitting right at the anchored VWAP from this year’s low, which adds weight to this level as a possible bounce zone.
The stock gapped down on May 5 following earnings, with Buffett announcing his future step-down—a major sentiment shift. This created two key gaps above:
• Weekly gap closes at $524
• Daily gap closes at $535.26
These levels could act as magnets if bulls regain control. A long trade here could make sense with a tight stop just below recent lows and an initial profit target at the $524 gap close. A push beyond that could fill the daily gap at $535.26 and potentially retest all-time highs.
On the bearish side, a decisive break below the 38.2% retracement and anchored VWAP could lead to further downside. First support comes in around $480, where a trendline from October 2023 lines up. Below that, a more significant move could take the stock to the $450.30 daily gap fill, which aligns with a second fan line going back to the 2022 bear market low.
Despite the pullback, BRK.B remains in a strong longer-term uptrend, but the company’s cautious tone—highlighted by its large cash position—signals potential uncertainty. Whether that’s fear or preparation for a big move remains to be seen.
Bottom line:
• Bullish setup: Bounce from VWAP + 38.2% retracement, targeting $524–$535.
• Bearish setup: Break below current support opens move toward $480 and possibly $450.
• Still a strong stock, but sentiment has shifted. Watch how price reacts at current levels.
The stock gapped down on May 5 following earnings, with Buffett announcing his future step-down—a major sentiment shift. This created two key gaps above:
• Weekly gap closes at $524
• Daily gap closes at $535.26
These levels could act as magnets if bulls regain control. A long trade here could make sense with a tight stop just below recent lows and an initial profit target at the $524 gap close. A push beyond that could fill the daily gap at $535.26 and potentially retest all-time highs.
On the bearish side, a decisive break below the 38.2% retracement and anchored VWAP could lead to further downside. First support comes in around $480, where a trendline from October 2023 lines up. Below that, a more significant move could take the stock to the $450.30 daily gap fill, which aligns with a second fan line going back to the 2022 bear market low.
Despite the pullback, BRK.B remains in a strong longer-term uptrend, but the company’s cautious tone—highlighted by its large cash position—signals potential uncertainty. Whether that’s fear or preparation for a big move remains to be seen.
Bottom line:
• Bullish setup: Bounce from VWAP + 38.2% retracement, targeting $524–$535.
• Bearish setup: Break below current support opens move toward $480 and possibly $450.
• Still a strong stock, but sentiment has shifted. Watch how price reacts at current levels.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.