Latest news with #CappThesis
CNBC
3 days ago
- Business
- CNBC
A technician's take: Berkshire Hathaway is primed for a comeback
Since the May 3 Berkshire Hathaway annual meeting in which Warren Buffett said it was time for him to start stepping back, the stock has suffered a steady decline. Technician Frank Cappelleri said Wednesday on CNBC's " Worldwide Exchange " that the stock is "extremely oversold and that's only happened a few times in the last few years, we're about to see another rally." Cappelleri, the founder of CappThesis, correctly called the stock's 15% rise early this year. During that run-up, the S & P was flat and the XLF SPDR Financials ETF was up half as much as Berkshire Hathaway. Then the stock began to fall. Since the May high, the stock is down 12%. "When we've seen down patterns like we've seen recently in this stock, we have seen recoveries" he said. This all comes amid reports details on a recent Berkshire Hathaway investment will be revealed soon. "It all works together" said Cappelleri. "Whatever the investment is, there will be relief they're putting that few hundred billion dollars to work and investors will react positively." According to six analysts polled by FactSet, four have the stock rated as a hold and two a buy. The average price target is $787,396 which is 10% higher than where the stock traded Wednesday. Berkshire Hathaway now makes up more than 11% of the XLF, JPMorgan Chase is a close second. Over the last year, Cappelleri has seen a pattern showing an inverse relationship. When one stock ticks up, the other ticks down showing a pattern of investors favoring one or the other. BRK.A JPM 1Y mountain JP Morgan vs. Berkshire Hathaway. "One of the best times to buy this stock is when it pulls back to support levels, that's happened numerous times since 2020 and we think it's happening again now," said Cappelleri.
CNBC
11-06-2025
- Business
- CNBC
A bullish breakout in this little-known pharma stock is forming, charts show
Out of a universe of more than 10,000 tradable names, a strict technical screen we run at CappThesis recently surfaced just six stocks worth a closer look. One of them is Royalty Pharma (RPRX) , and we think the chart deserves our attention right now. There are four key reasons why RPRX stands out: 1. A bullish inverse head-and-shoulders pattern is nearing completion The first — and most importantly from our perspective — is a bullish inverse head-and-shoulders pattern has taken shape over the past several months. These patterns can mark a trend reversal or continuation of a trend. This particular formation has a combination of the two. The pattern has taken shape after a prolonged downtrend from the past few years. That said, the stock has been in rally-mode since bottoming in early December. The formation's neckline is near $34, and the stock is getting closer to challenging that level. A decisive breakout above that line would complete the pattern and trigger a breakout. The projected upside target based on the height of the formation is $39. That level also aligns with resistance from mid-2022. 2. Pattern forming above a larger base breakout What makes this setup even more compelling is that the inverse H & S pattern has been constructed above the breakout zone of a much larger base. The prior breakout occurred near $32, where rally attempts had been snuffed out multiple times since 2023. As the saying goes, once resistance is overtaken, it then becomes support, which is the case now. The ability of RPRX to hold above the prior breakout zone while forming a continuation pattern increases the probability of a sustained move higher. 3. Longer-term context supports the bull case Zooming out, RPRX still has plenty of ground to recover. The stock reached a high of $56.50 shortly after its IPO in mid-2020. Since then, it's been in a multiyear downtrend before bottoming out in late 2024. That prolonged decline may have caused previously eager buyers to become disinterested. This is understandable given how well so many other stocks have done the last two years. However, the sell-off helped reset expectations, valuations, and sentiment—creating a potential springboard if this pattern can be leveraged. Further, the 38.2% Fibonacci retracement of the entire decline from 2020 through 2023 is near $33. That lines up with the 32-breakout zone discussed above, making this area even more important to potentially overtake. 4. Relative strength From a relative strength perspective, RPRX has been outperforming many other biotech counterparts. We can see this via the relative strength line vs. the XBI ETF. Thus, the comeback is evident both on an absolute basis and relative to RPRX's peers, which of course is constructive for further gains as well. The bottom line is that RPRX has done a good job bouncing from its lows, and for that to develop into a more substantial and long-term uptrend, the stock must continue to form and break out from bullish chart formations. It has a chance to continue that process now. DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
