Berkshire Hathaway hits all-time high as RSI flashes its most overbought signal since 2024

What happened

Berkshire Hathaway closed last week at $541.79 after reaching an all-time high of $549.96. The stock rose 9.3% from its October 1 low of $495.96. Its relative strength index, a momentum gauge, touched 81.30 last Thursday and remains elevated at 73.54.

Confirmed

Global impact / market context

A high relative strength index reading means buying has been unusually strong and the stock may be due for a pause. Traders who bought during the rapid October climb could sell to lock in gains, pushing the price back toward its moving averages, which are average prices over set periods.

Analyst inference

Berkshire trades above its 20-day, 50-day, 100-day, and 200-day moving averages, which signals upward momentum across timeframes. Yet the combination of extreme momentum and a fast one-month gain leaves shares vulnerable to profit-taking if broader market sentiment softens, so investor positioning faces pullback risk.

Analyst inference

What to watch

1. Watch whether Berkshire holds above its recent all-time high of $549.96 or slips below it, since the article says investors are watching whether shares can sustain levels above the recent high. Confirmed
2. The article suggests overbought readings could trigger a short-term pullback toward the moving averages that have provided support, so watch whether the price falls toward those average levels. Proposed
3. Watch the relative strength index for a drop below 70, the overbought threshold, which would suggest buying pressure has cooled and profit-taking may be easing. Analyst inference

Evidence

• seekingalpha.com