WSM finds support at 20-day moving average
Williams-Sonoma Inc. (WSM) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
WSM finished the week 4.17% higher at 74.02 after edging higher $0.03 (0.04%) today on low volume, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (WSM as at Feb 14, 2020):
Friday's trading range has been $1.28 (1.73%), that's slightly below the last trading month's daily average range of $1.53. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for WSM. Prices continued to consolidate within a tight trading range between 72.77 and 74.53 where it has been caught now for the last three trading days.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and two bearish patterns, the Bearish Spinning Top and the Hanging Man. The last time a Hanging Man showed up on November 8, 2019, WSM actually gained 3.08% on the following trading day.
After trading as low as 72.89 during the day, the stock found support at the 20-day moving average at 73.45. After having been unable to move above 74.38 in the previous session, Williams-Sonoma ran into sellers again around the same price level today, missing to move higher than 74.17.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 74.53 where further buy stops could get activated. With prices trading close to this year's high at 77.00, upside momentum might accelerate should the share be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 20" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Williams-Sonoma. Out of 65 times, WSM closed lower 56.92% of the time on the next trading day after the market condition occurred.