Williams-Sonoma Surges 6.85% to $200.52 on Bullish Technical Breakout

Williams-Sonoma (WSM) closed at $200.52 on August 4, 2025, surging 6.85% on elevated volume of 1.71 million shares. This completed a two-day 7.20% advance, reflecting robust bullish momentum after consolidating near the $180-190 range in late July.
Candlestick Theory
The August 4 session formed a decisive bullish marubozu candle, closing near the daily high of $201.10 after penetrating the psychological $200 resistance. This follows a hammer pattern on August 1 at $181.51, confirming strong support. The $200-201 zone now becomes immediate resistance, while the $181.51 swing low and $175 consolidation area establish key support. Consecutive higher highs and higher lows since mid-July suggest sustained upward momentum.
Moving Average Theory
The 50-day MA ($178.50) maintains an upward slope above the 100-day MA ($170.20) and 200-day MA ($162.80), confirming a bullish long-term trend structure. The August 4 close at $200.52 positions WSM 12.3% above the 50-day MA – the widest premium in three months – indicating accelerating upside momentum. Golden crosses persist between all three averages, with the 50/100-day spread widening to 4.9%, reflecting strengthening intermediate bullishness.
MACD & KDJ Indicators
MACD (12,26,9) shows a bullish crossover with histogram bars expanding positively since July 29, corroborating the price breakout. However, KDJ signals overbought conditions with the K-line (94) and D-line (89) above 80 after the sharp rally. The J-line (104) indicates extreme short-term exuberance. While MACD confirms trend strength, KDJ warns of potential consolidation near-term, though no bearish divergence is present.
Bollinger Bands
Price closed above the upper Bollinger Band ($195.20) on August 4, marking the first such close since April’s earnings surge. Band width expanded 38% during the rally, reflecting volatility reemergence after July’s contraction. Historically, WSM has maintained upper-band proximity for 5-7 sessions during strong uptrends, suggesting near-term consolidation may precede further upside rather than immediate reversal.
Volume-Price Relationship
Volume surged 22% above the 20-day average during the August 4 breakout, validating bullish conviction. The rally’s two-day volume of 3.12 million shares exceeds the preceding three down days’ total (3.55 million), confirming accumulation. Volume profiles show consistent support at $180-185 with churn volume declining at resistance breaks – a hallmark of sustainable advances.
Relative Strength Index (RSI)
The 14-day RSI (76) entered overbought territory, though readings between 70-80 have persisted for 10+ days during prior trend accelerations. Average gains over the past 14 sessions (3.2%) dwarf average losses (1.1%), yielding a 74.4% gain dominance ratio. While RSI cautions against chasing extensions, its warning nature is mitigated by confirmation from volume and MACD.
Fibonacci Retracement
Using the April 9 high ($217.82) and July 1 low ($162.40), key retracement levels cluster with technical supports: the 23.6% level ($195.50) aligns with the August 4 breakout point, while the 38.2% level ($186.20) converges with the 50-day MA. The recent close above $195.50 resistance confirms bullish continuation targeting the 0% level ($217.82). Confluence exists at $186.20 where Fibonacci, volume support, and moving averages converge.
Confluence and Divergence
Notable confluence occurs at $195-197 where Fibonacci, prior resistance, and Bollinger Band extensions align, now acting as support. The volume-backed breakout above this zone enhances its technical significance. While RSI and KDJ indicate overbought conditions, no bearish divergences are evident as oscillators align with new price highs. MACD’s accelerating histogram and expanding Bollinger Bands provide complementary trend confirmation, though Bollinger’s upper-band breach suggests short-term mean reversion probability toward $195 support.