Berkshire Hathaway (BRK.B) Elliott Wave Update: Bullish Outlook with a Clear Invalidation Level
Berkshire Hathaway (BRK.B) continues to present a strong bullish setup from an Elliott Wave perspective. Our analysis across multiple timeframes suggests that the stock remains in a larger impulsive cycle, with recent price action confirming the expected wave structure. Below, we will examine both the daily and hourly charts to provide a comprehensive outlook on the current trend.
On the daily chart, BRK.B is advancing within a five-wave impulse. The recent pullback aligns with a completed Wave 4, which took the shape of a contracting triangle. A strong bounce from the invalidation level near $259.70 suggests Wave 5 is now in progress.
Daily Elliott Wave Counts:
Wave 3 showed strong momentum and extended well beyond Wave 1, a common trait in Elliott Wave structures. Wave 4 then formed a contracting triangle, with sub-waves ((a))-((b))-((c))-((d))-((e)) creating a consolidation phase before breaking higher. This pattern aligns with the guideline that fourth waves often correct sideways. With the breakout confirmed, Wave 5 is now unfolding and is expected to push BRK.B to new all-time highs. We continue to trade in the direction of the right-side tags and will look for further confirmations to validate the uptrend.
Currently, Wave ((ii)) has unfolded as sub waves ((a))-((b))-((c)) which formed a corrective move. As long as the price stays above $454.61, we expect further upside. Confirmation of Wave (iii) breaking higher with momentum will strengthen the bullish case.
Short-term Elliott Wave Outlook:
With a strong bullish structure, traders should focus on long positions while managing risk. The invalidation level at $454.61 is key—if broken, the wave count will need reassessment. Until then, pullbacks offer potential buying opportunities.BRK.B remains in a clear uptrend, and we do not recommend selling. As always, patience and disciplined risk management are essential.
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