Macy's Inc (NYSE:M) shares are trading higher Monday. Berkshire Hathaway position disclosed in a regulatory filing. Here’s what you should know.

• Macy’s stock is holding steady today. What should traders watch with M?

Berkshire Initiates A New Stake

Berkshire Hathaway revealed it opened a new position in the retailer during the first quarter. The filing showed a stake valued at roughly $55 million, according to CNBC. This amount is small by Berkshire standards but still meaningful enough to draw investor attention.

The size of the position has led many to believe it was purchased by investment lieutenant Ted Weschler, who manages a portion of Berkshire's equity portfolio.

Macy’s Chart Is A Decision Point, Not A Victory Lap

Technically, Macy's is trying to stabilize after a pullback from the April swing high, but the trend picture is mixed enough to keep both bulls and bears employed. The stock is trading 4.5% below its 20-day SMA and 7.6% below its 100-day SMA, while sitting just 0.7% below the 50-day SMA, right at the kind of "decision level" where rallies either build traction or get sold on sight.

Momentum isn't doing bulls any favors yet: MACD is below its signal line and the histogram is negative, pointing to upside pressure cooling versus the prior upswing. And while the 20-day SMA is above the 50-day SMA, the death cross in May keeps the intermediate trend from getting a clean bill of health. The practical roadmap is straightforward: reclaim the heavier cluster of averages overhead, or risk drifting back toward the March swing low zone.

The levels traders will keep circling are equally clean. Resistance sits at $20.50, a round-number area that also lines up near the 100-day SMA at $20.04, where rebounds can stall. Support is $17, a prior demand zone that becomes the line in the sand if selling returns.

M Shares Are Rising

M Price Action: Macy’s shares were up 0.98% at $18.59 at the time of publication on Monday, according to Benzinga Pro.

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