ST/US/BRK.B saw a slight gain, closing at 524.61, exactly at the 60-day high, and even set a new 52-week high during trading. However, the RSI has surged to 88.4—a reading rarely seen in a large-cap blue-chip stock, typically only appearing in continuous one-sided rallies without pullbacks.
From a bias perspective, it doesn't look exaggerated: it is 2.3% above the 9-day line, 4.7% above the 21-day line, and 6.1% above the 50-day line. The three moving averages show a standard bullish alignment, stepping up level by level, with no gaps left from overly rapid rises.
The contradiction lies here—the momentum indicators are extreme, yet the price structure remains healthy. This combination usually does not reverse directly but is more likely to consolidate via sideways movement to digest the gains. The 21-day line at 500.92 serves as the pivot for this upward trend; as long as it holds support, the trend remains intact. Only if it truly breaks below the 50-day line at 494 would it indicate that capital seeking safe-haven blue-chips is starting to exit. Chasing the current price is clearly not worth the risk-reward ratio.
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