Williams-Sonoma Drops 5.20% In Two Days As Bearish Indicators Dominate

Williams-Sonoma (WSM) declined 3.61% in the most recent session, extending its losing streak to two days with a cumulative 5.20% drop, closing at 189.06 amid sustained selling pressure.
Candlestick Theory
Recent sessions for Williams-Sonoma reveal bearish dominance, particularly with the two consecutive long red candles on October 6–7, indicating strong selling momentum. The stock failed to breach the resistance near $199–$203 (established by the October 3 high and September peaks). Support emerges near $188.84–$189.06, the current session’s low-close range, coinciding with the June 2025 consolidation zone. A breakdown below $188.84 may accelerate declines, while recovery above $196.09 (recent high) could signal relief.
Moving Average Theory
The 50-day moving average (MA) has crossed below both the 100-day and 200-day MAs, confirming a bearish trend structure. Current price ($189.06) trades below all three key MAs, with the 200-day MA near $178 acting as distant psychological support. The widening gap between the 50-day MA (~$193) and price action underscores near-term weakness. This alignment suggests entrenched downward momentum, though a rebound toward the 50-day MA may test bearish resolve if buyers emerge.
MACD & KDJ Indicators
The MACD histogram resides in negative territory, reflecting sustained bearish momentum. Concurrently, the KDJ oscillator shows the %K line below %D, signaling oversold conditions but without immediate reversal confirmation. Both indicators align in their bearish readings, though KDJ’s proximity to oversold extremes warrants vigilance for potential divergence or momentum exhaustion. No bullish divergence is yet evident, suggesting downside risks persist.
Bollinger Bands
Volatility expansion is observed as price tests the lower Bollinger Band (~$188), a level breached intraday in the latest session. The bands widened notably during the October selloff, implying accelerated directional momentum. Persistent closes near the lower band increase the probability of either consolidation or oversold relief rallies, but a confirmed close below the band could trigger further technical selling.
Volume-Price Relationship
Recent declines occurred on elevated volume (1.51M shares vs. 969K prior), validating bearish conviction. The October 7 selloff registered the highest volume in three weeks, confirming distribution. Earlier rallies (e.g., August 4 surge on 1.71M shares) demonstrated healthy volume support, contrasting with the current volume-backed downturn. This divergence between volume on rallies versus selloffs reinforces the bearish near-term bias.
Relative Strength Index (RSI)
The 14-day RSI is currently near 38, approaching oversold territory (<30) but not yet signaling exhaustion. This reading aligns with the price trajectory but lacks traditional oversold severity that might anticipate a reversal. Caution is warranted, as RSI can remain depressed in strong downtrends. A move below 30 could attract contrarian buyers, though confirmation via price reversal would be essential.
Fibonacci Retracement
Drawing Fib levels between the September high of $217.71 and the August low of $132.20 reveals critical thresholds. The 61.8% retracement ($183.50) was breached recently, shifting focus to the 50% level ($175), which aligns with the 200-day MA. A deeper pullback toward the 38.2% retracement ($166.50) is plausible if $183–$185 support fails. Confluence exists here, as the 50% Fib and long-term MA offer potential stabilization zones.
Confluence and Divergence
Confluence reinforces the bearish outlook: Volume validates price declines, MACD/KDJ signal ongoing weakness, and price trades below all key MAs near Fib support. No major bullish divergences are evident, though KDJ and RSI approach oversold levels that may precede short-term bounces. Traders should monitor the $188.84–$183.50 support band; failure here could extend the correction toward $175. Upside requires reclaiming the 50-day MA near $193, supported by volume expansion.