OMAHA, NE – Shares of Warren Buffett’s investment powerhouse, Berkshire Hathaway Inc. (NYSE: BRK.A), ended the trading week on a sour note, closing at $7,31,220.00 on Thursday. The stock shed $3,780.00, marking a 0.51% decline and setting a potentially bearish precedent for the start of next week.
The day’s trading painted a picture of early optimism that ultimately soured. Berkshire’s Class A shares opened at their low point of $7,27,532.06 and immediately caught a bid, rallying impressively throughout the morning. The stock reached a session high of $7,36,312.50, briefly surpassing the previous day’s closing price of $7,35,000.00.
However, this strength proved to be short-lived. By midday, sellers took firm control of the market, initiating a steady decline that pushed the stock back into negative territory. Despite a minor bounce attempt in the final hour, the stock was unable to recover, closing well off its highs and signaling a loss of momentum.
Outlook for Monday:
The inability to hold onto significant morning gains is a classic sign of weakness, suggesting that the path of least resistance may be lower when the market reopens on Monday.
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The Bearish Case: The reversal from the day’s high and the close below the key $7,35,000 level are significant technical warning signs. This indicates that buyers lacked the conviction to support the higher prices, and sellers dominated the latter half of the session. The downward momentum into the close is likely to carry over.
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The Bullish Case: Value investors might take note of the relatively low P/E ratio of 12.99. Should the stock dip further on Monday, buyers may see an opportunity to enter the stalwart company’s stock at a discount. The $7,30,000 mark acted as a loose support level in the afternoon and will be the first key area for bulls to defend.
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Given the clear reversal pattern and weak close, Berkshire Hathaway’s stock is expected to face downward pressure at Monday’s open. The primary battle will be fought around the $7,30,000 psychological level. If sellers break through that support, a retest of Thursday’s low near $7,27,500 could be imminent. A recovery will require a significant shift in sentiment and the ability to reclaim the $7,35,000 level.
