Berkshire Hathaway – idea for the most expensive stock

Pretty much every trader should be familiar with the investment legend Warren Buffett. The stock of his holding company Berkshire Hathaway is said to be the most expensive stock in the world, and is currently recording prices at an incredible 250,000 USD. For most traders, therefore, this class A stock is barely tradable, but there is a trading chance for a longer-term long scenario available by means of the class B stock (BRK-B), which is being traded at a lesser price of a current 166 USD. In this analysis, we will go into more detail on the possibility of rising prices.

 

BRK-B daily chart

 

A long-term trade – the chart image

The daily chart is clearly in an upward trend and is recording above the widely regarded SMA200 line. The superior trend stretches out over a time period of several months, which is why our trading idea is aimed at traders oriented toward the long term.

In these large trend sizes, we do not even need the hourly chart for a signal; it would have to be clearly apparent in the day, as was already the case in February. Here, the overlapping and the combination of the various trend sizes can be clearly seen on the daily chart: the superior trend provides the direction; the subordinate trend, marked with arrows, is considered the signal level.

The formation of a signal in these trend sizes can, therefore, take several weeks, which is why one should continue to observe this value for long-term trading in one’s personal watchlist.

The first partial sales should be carried out at the latest at the high at 176.50 USD. As long as the price does not significantly undercut the low at 158 USD, this stock knows only one direction in the chart: long!

 

News and earnings

The next company figures are expected on the 5th May 2017; however, at the moment, this date is merely expected and not confirmed. Before an entry, therefore, take into account all company news, news from the overall market and the current actions of the central banks, primarily the FED.

 

Parameters

Entry: depending on the formation of the signal trend, between 161 USD – 166 USD

Stop: depending on the formation of the signal trend, below the last low.

Partial sales: target zone at 176.50

 

 

 

Disclosure of possible conflicts of interest:

At the time of publishing this analysis, the author is not invested in the securities or underlyings discussed.

Disclaimer:

Exchange transactions are associated with significant risks. Those who trade on the financial and commodity markets must familiarize themselves with these risks. Possible analyses, techniques and methods presented here are not an invitation to trade on the financial and commodity markets. They serve only for illustration, further education, and information purposes, and do not constitute investment advice or personal recommendations in any way. They are intended only to facilitate the customer’s investment decision, and do not replace the advice of an investor or specific investment advice. The customer trades completely at his or her own risk.

Berkshire Hathaway – idea for the most expensive stock
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