Is Berkshire Hathaway (NYSE: BRKB), the ultimate Warren Buffett stock, a buy now during the coronavirus crisis? It looks like it is; price action is telling us a lot about this stock.
Berkshire Hathaway Inc., through its subsidiaries, engages in insurance, freight rail transportation, and utility businesses. It provides property, casualty, life, accident, and health insurance and reinsurance; and operates railroad systems in North America.
Warren Buffett is widely regarded as one of the greatest investors of all time. It’s logical to think as a trader that one way to share in his success is to invest in his firm, Berkshire Hathaway. BRK.B stock is building a price action supporting a buy now, but is it a buy amid the coronavirus crisis? Let’s take a close look at the technical performance of the ultimate Warren Buffett stock.
See Berkshire Hathaway’s weekly timeframe in the trading analysis below. We can see a weak supply imbalance in blue that has already been tested, providing room for the price to keep rallying to test it again. There is a lot of profit margin to reach that imbalance and eliminate it in the next couple of months.
Berkshire Hathaway is a conglomerate that owns some of America’s most famous firms and companies. It owns firms like Duracell, Dairy Queen, Fruit of the Loom and even rail operator BNSF. Although Berkshire Hathaway is perhaps more famous for serving as an investment vehicle for Warren Buffett and those in charge at the top of the pyramid.
Warren Buffett became a big investor in airlines such as Delta Air Lines (DAL). The global coronavirus pandemic did not help at all to that position as airline stocks were decimated and sold off very strongly and sharply since the pandemic shattered the airline industry a couple of months ago.
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When we look at the smaller timeframes, like the hourly timeframe used for shorter-term trading and intraday trading, we can see that H1 is getting stronger and stronger, creating bullish impulses on the way up to the weekly supply imbalance mentioned in the previous technical analysis.
Since Berkshire Hathaway is a conglomerate in its own right, the company has interests in segments such as e-energy and railroads. Those two sectors and many others have been hit hard by the coronavirus shutdowns and massive economic contraction. However, Berkshire Hathaway has started to rally again regardless of coronavirus-negative factors.
Selling shares of Berkshire Hathaway (NYSE: BRKB) is not a good idea now, no matter what everyone is saying about the company and the negative effects supported by the pandemic. Price action and supply and demand are telling us the opposite, that buying stocks is possible.
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