All stocks tried to recover what they lost and Berkshire Hathaway was not exception since the crash of March 2020. BRK.B did not only recover the lost, but It also reached historic highs. Now, it is building an impulse from March 2020 lows and we are going to follow to determinate the best area to complete the impulse.
Berkshire Hathaway April Daily Chart
As we see in this daily chart from April, The wave ((1)) ended and the structure could be weird for you because it is not quite common, and it is called an expanding leading diagonal. (If you want to learn more about Elliott Wave Theory, please follow these links: Elliott Wave Education and Elliott Wave Theory). I think it is better to manage the structure of Berkshire Hathaway in that way instead of a nest, and this is because comparing some cycles in the market has more sense with the current structures of the market. Then we have a clear (A), (B), (C) correction as wave ((2)) and we called the continuation of wave ((3)) to the upside.
Berkshire Hathaway September Daily Chart
In this daily chart from beginning of September, we were calling one more high to complete wave ((3)); but after a month, the Berkshire Hathaway’s shares entered in a ranging stage and it has consumed a lot of time to think that the structure from wave (3) in blue peak it is more likely that is the wave ((4)) of the impulse and we changed the labelling of the chart.
Berkshire Hathaway October Daily Chart
Then we restructure the impulse and wave ((3)) ended at 295.08. Wave ((4)) pullback ended at 270.73 and we should continue with the bullish momentum. We began the last impulse to complete wave ((5)). In lesser degree wave (1) ended at 291.82 and wave (2) correction ended at 271.36 and wave (3) was building. We were calling at least 310.00 dollars as minimum target.
Berkshire Hathaway December Daily Chart
The wave (3) of ((5)) ended at 296.65. The pullback as wave (4) was very deep almost invalidated the count ending at 274.79. Now, we have broken the last peak of wave (3) validating an ending diagonal structure to complete wave (5) of ((5)). The last high hit 301.58 and the impulse from March low could be done and a big correction could be started. However, we are proposing a continuation higher to reach target area of 305.00 – 310.00 given some market conditions. A break of 274.79 will confirm the pullback is already here.
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