Williams-Sonoma Slides 3.23% Amid Bearish Technical Signals Testing Key $195 Support

Williams-Sonoma (WSM) declined 3.23% in the most recent trading session (2025-09-12), closing at $196.95 amid a trading range of $195.78 to $203.23. This follows a period of heightened volatility, including a 5.61% surge on 2025-09-04, and positions the stock near critical technical levels after retreating from the $205–$210 resistance zone established in mid-August.
Candlestick Theory
Recent candlestick patterns suggest bearish momentum, with the most recent session forming a long red candle closing near its low after a failed attempt to breach $203 resistance. This follows a spinning top pattern on 2025-09-10 (high $203.92, low $201, close $202.67), indicating indecision. Key support emerges at $195.78 (2025-09-12 low) and $192.17 (2025-08-27 trough), while resistance remains at $203.23 (2025-09-12 high) and the $210.59 August peak. A sustained break below $195.78 could trigger further downside.
Moving Average Theory
The 50-day SMA ($197.20) has been breached to the downside, reflecting short-term bearish pressure. However, the stock remains above the 100-day SMA ($184.80) and 200-day SMA ($169.50), affirming the broader uptrend. The 50-day/100-day golden cross persists, but weakening momentum is evident as the 5-day SMA ($201.10) turns downward. Confluence exists near $196–$197 where the 50-day SMA aligns with the psychological $200 support-turned-resistance level.
MACD & KDJ Indicators
The MACD (12,26,9) histogram has turned negative, signaling bearish momentum acceleration. Simultaneously, the KDJ oscillator (9,3,3) shows the %K line (25) crossing below %D (30), approaching oversold territory but not yet extreme. This divergence suggests lingering downside risk despite nearing oversold conditions. Notably, the KDJ reading conflicts with MACD’s bearish bias, reflecting short-term indecision in momentum.
Bollinger Bands
Bollinger Bands (20-day, 2σ) are expanding, indicating rising volatility after a contraction phase. The close at $196.95 sits near the lower band ($194.80), suggesting a potential technical bounce. However, two consecutive closes below the middle band ($201.60) reinforce bearish control. A recovery above $201.60 could signal stabilization, while failure near the lower band may accelerate selling pressure toward $192–$195 support.
Volume-Price Relationship
The 3.23% decline on 2025-09-12 occurred on below-average volume (741,282 vs. 30-day avg ~1.1M), weakening bearish conviction. Earlier significant moves – such as the 5.61% rally on 2025-09-04 (1.33M volume) and 6.85% surge on 2025-08-04 (1.71M volume) – were validated by robust volume, confirming bullish momentum. Current light-volume pullback lacks confirmation, suggesting the downtrend may exhaust near support levels.
Relative Strength Index (RSI)
The 14-day RSI (43.5) is neutral but descending, aligning with the price retreat. It remains above oversold thresholds (<30), providing room for further downside before signaling exhaustion. Bearishly, RSI failed to breach 60 during the September rebound attempts, indicating weakening momentum. Caution is warranted as RSI may diverge positively if price stabilizes near $195 support while the oscillator rebounds.
Fibonacci Retracement
Applying Fibonacci levels to the swing from $188.06 (2025-08-28 low) to $210.59 (2025-08-13 high), key retracement supports emerge at $202.05 (23.6%), $199.32 (38.2%), and $196.60 (50%). The current close at $196.95 tests the critical 50% retracement, with confluence near the $195–$197 horizontal support zone. Failure here targets the 61.8% level ($193.88), while recovery above $199.32 could reactivate bullish interest.
Confluence is notable at $195–$197, where Fibonacci support, Bollinger lower band, horizontal price support, and volume dynamics align to suggest a pivotal technical juncture. The bearish MACD and moving-average crossover diverge from neutral RSI and KDJ readings, reflecting conflicting signals. Should the stock hold $195–$197, a technical rebound toward $203 resistance appears probable. However, a breakdown may accelerate declines toward $192–$193 support, warranting vigilance for volume-confirmed breaches.