Market Analysis: Berkshire Shares Fall after Great Report


Warren Buffett's holdings posted record operating profits last week, pushing Berkshire Hathaway's asset value to over USD 1 trillion for the first time.

→ Operating income rose 6.65% in the second quarter to USD 10.04 billion, the company's all-time high from USD 9.42 billion in the same period last year.

→ BRK's earnings per share were USD 4.6 (expected USD 3.7).

However, a bearish engulfing pattern has formed on the BRK stock chart near the all-time high of USD 362.1 set in March 2022. The share price fell overall with the US stock market under pressure, including from the rating downgrade by Fitch. At the same time, BRK's share price is stronger than E-mini S&P 500 futures, which are down more than 2% from their August high.

Technical analysis of the BRK chart suggests that Berkshire Hathaway's share price may be affected by:

→ support from the lower border of the ascending channel (shown in blue);

→ support from the USD 333 level, which served as resistance for the May range;

→ a bullish gap zone around USD 337, where, by the way, the 50% level of growth from the lows of the May range to the high of the year passes.

Analysts polled by MarketWatch have a median target price of USD 384.26 for BRK (about +10% from current levels).

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