Williams-Sonoma Rises 3.59% Amid Bullish Technicals And Volume Surge

Williams-Sonoma (WSM) gained 3.59% to close at $188.23 in the latest session, marking its second consecutive advance with a two-day cumulative gain of 4.26%. This upward momentum occurs against the backdrop of technical patterns examined below.
Candlestick Theory
Recent price action shows a bullish engulfing pattern formed on July 23rd and 24th, followed by a sustained recovery. Key resistance is established at $188.90 (July 28th high), while support converges near $180.50, aligning with the July 24th swing low. The breach of the $184 resistance on July 23rd signaled renewed bullish conviction.
Moving Average Theory
The 50-day EMA ($172.80) crossed above the 100-day EMA ($169.40) in mid-July, confirming a bullish near-term bias. With the price trading above all three moving averages (50-day, 100-day, 200-day), a bullish hierarchy remains intact. The 200-day SMA ($160.75) provides a robust long-term floor, having contained the April and June pullbacks.
MACD & KDJ Indicators
MACD (12,26,9) maintains a positive histogram above its signal line, reflecting sustained bullish momentum. However, KDJ shows the %K line (86) diverging downward from overbought territory while %D holds near 80, indicating potential short-term exhaustion. This divergence suggests consolidation may precede further upside.
Bollinger Bands
Volatility expansion occurred during the late-June selloff when prices breached the lower band. Current trading near the upper band ($189.20) coincides with overbought KDJ readings. Band width contraction to 6-week lows signals reduced volatility, typically preceding directional breakouts. Confluence with the $188.90 resistance merits monitoring.
Volume-Price Relationship
The July 28th advance occurred on 1.23 million shares—20% above the 30-day average—validating buyer conviction. Notable accumulation appeared during the July 15th capitulation (4.07 million shares at $160.39), establishing a volume-based support zone. Downside moves since May have consistently occurred on declining volume, supporting the bullish structure.
Relative Strength Index (RSI)
The 14-day RSI (69) approaches overbought territory but remains below the 70 warning threshold. This coincides with similar readings during prior minor peaks in May and March where consolidation followed. RSI divergence emerged during the June decline as higher lows formed against lower price lows, foreshadowing the current rebound.
Fibonacci Retracement
Applying Fibonacci to the March-April decline ($217.71 to $129.47) shows the 61.8% retracement ($183.50) acting as resistance in May before being decisively overcome in July. The current advance approaches the 78.6% level ($193.60), which aligns with the March swing high of $194.58—a probable next resistance zone. The 38.2% retracement ($165.90) provided support during June's pullback.
Confluence and Divergence
Strong confluence exists near $180, combining the 61.8% Fibonacci level, 50-day EMA, and volume support. The KDJ/RSI divergence against recent price highs suggests near-term consolidation could develop. However, the MACD confirmation, volume-backed breakout above $184, and moving average alignment support the broader uptrend. A decisive close above $189 could trigger momentum continuation toward the $193.60 Fibonacci target.