Berkshire Tests $736K Support as Oversold Conditions Build
$Berkshire Hathaway(BRK.A)$
Berkshire Hathaway Inc. Drops -1.18%: Value Giant Tests Support at $736K, Buffett's Fortress Under Pressure
Latest Close Data
BRK.A closed at $736,300 on December 10th, down -1.18% (-$8,820).
The stock traded in a narrow $11,590 range and sits 9.4% below its 52-week high of $812,855. Volume was light at 432 shares with a 0.54 volume ratio.
Core Market Drivers
Berkshire faces headwinds from broader market uncertainty and Warren Buffett's recent share reduction activities.
The conglomerate's insurance and energy segments are navigating challenging macroeconomic conditions.
Capital outflows totaled $82 million over recent sessions, reflecting cautious institutional sentiment.
Technical Analysis
RSI(6) at 18.43 signals severely oversold conditions, while RSI(12) at 35.64 suggests deeper weakness.
MACD shows bearish divergence with DIF at 1,554 below DEA at 4,556, generating negative momentum at -6,004. KDJ indicators confirm selling pressure with K-line at 23.94.
Key Price Levels
Primary Support: $736,250 (December 9th level)
Strong Resistance: $745,120 (previous close)
Immediate Pivot: $740,000 psychological level
Valuation Perspective
Trading at 15.7x P/E TTM versus historical averages of 20-25x, BRK.A appears undervalued. P/S ratio of 2.85 remains attractive for a diversified conglomerate with $10.59 trillion market cap.
Analyst Targets
3 analysts maintain mixed outlook: 1 Buy, 1 Hold, 1 Underperform. Average target price $769,586 suggests 4.5% upside potential, with range from $695K-$893K.
Weekly Outlook
Expect consolidation between $730K-$750K. Break below $735K could target $720K support zone. Oversold RSI suggests potential bounce toward $745K resistance.
Risk Disclaimer
This analysis is for informational purposes only and does not constitute investment advice. Past performance does not guarantee future results.
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