Berkshire Hathaway A [Long term analysis]
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Good 'ol Berkshire Hathaway Class A shares.
Looks like BRK.A is at a potential reversal zone, and this could be a good chance to either a) Short until desired targets or b) Wait for support and signs of reversal at the 23.6%, 38.2% or 50%. If we do indeed reverse at this zone, this will be our wave 4 correction yielding an extended wave 5 afterward.
According to Elliot Wave theory if a third wave fails to make it past 1.618x of the initial wave 1, you can expect an extended wave 5 which will have targets of 1.0x, 1.618x or 2.618x of wave 1 to 3 projected from the wave 4 bottom. This count is invalidated if we close above $330,000 on the M1 interval.
The R:R on this position would be about 1:3.5
A brief recap of BRK.A drops:
3/1973 - 1/1975 - 59.1% drop (S&P lost 44%) - US economy in recession resulting from oil crisis and fallout from Breton Woods Agreement.
10/1987 - 10/1987 - 37.1% drop (S&P lost 34%) - Black Monday Stock crash.
6/1998 - 3/2000 - 48.9% drop (S&P gained 27%) - Just before dot-com bubble burst.
9/2008 - 3/2009 - 50.7% drop - The darkest days of the great financial crisis.
S/L: $330,000
Entry: $296,000
Target 1: 23.6% / $258,570
Target 2: 38.2% / $223,051
Target 3: 50% / $194,334
"If you can keep your head when all about you are losing theirs...
If you can wait and not be tired by waiting...
If you can think - and not make thoughts your aim...
If you can trust yourself when all men doubt you...
Yours is the Earth and everything that is in it."
Looks like BRK.A is at a potential reversal zone, and this could be a good chance to either a) Short until desired targets or b) Wait for support and signs of reversal at the 23.6%, 38.2% or 50%. If we do indeed reverse at this zone, this will be our wave 4 correction yielding an extended wave 5 afterward.
According to Elliot Wave theory if a third wave fails to make it past 1.618x of the initial wave 1, you can expect an extended wave 5 which will have targets of 1.0x, 1.618x or 2.618x of wave 1 to 3 projected from the wave 4 bottom. This count is invalidated if we close above $330,000 on the M1 interval.
The R:R on this position would be about 1:3.5
A brief recap of BRK.A drops:
3/1973 - 1/1975 - 59.1% drop (S&P lost 44%) - US economy in recession resulting from oil crisis and fallout from Breton Woods Agreement.
10/1987 - 10/1987 - 37.1% drop (S&P lost 34%) - Black Monday Stock crash.
6/1998 - 3/2000 - 48.9% drop (S&P gained 27%) - Just before dot-com bubble burst.
9/2008 - 3/2009 - 50.7% drop - The darkest days of the great financial crisis.
S/L: $330,000
Entry: $296,000
Target 1: 23.6% / $258,570
Target 2: 38.2% / $223,051
Target 3: 50% / $194,334
"If you can keep your head when all about you are losing theirs...
If you can wait and not be tired by waiting...
If you can think - and not make thoughts your aim...
If you can trust yourself when all men doubt you...
Yours is the Earth and everything that is in it."
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