Despite all of the attention on Berkshire Hathaway's ( BRK.B) portfolio this week, the stock itself is showing some cracks. That's because Berkshire is forming the exact opposite trading pattern from the one in Polaris right now. Here's why buyers should beware.
Berkshire is currently forming a descending triangle pattern, the bearish opposite of the ascending triangle in PII. The descending triangle is formed by downtrending resistance pushing down from above shares and horizontal support to the downside, in this case at $111. A breakdown through $111 is Berkshire's sell signal.A parabolic drop in relative strength since June indicates that Berkshire has been woefully underperforming the S&P 500 in recent months -- you can see it from the stock's inability to make new highs in November. Buyers look anemic here, but failure to catch a bid at $111 is the start of something bigger. Don't sell unless Warren Buffett's baby unless shares fall through that price floor.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV