Chart of the Day: Williams-Sonoma (WSM)
In studying charts over the weekend I noticed that an ascending triangle pattern has formed in Williams-Sonoma (WSM).
Williams-Sonoma is a leader in the $117 billion home furnishings industry. The company offers high-end cooking essentials, while it’s Pottery Barn segment provides casual home accessories. Continued improvement in its e-commerce shopping platform has made WSM one of the largest e-commerce retailers in the U.S. and should continue to drive growth.
Take a look at the 1-year chart of WSM below with my added notations:
Over the past two months, WSM has hit the $88 resistance (red) on multiple occasions, while also climbing a trend line of support (green). Together, these two lines have formed an ascending triangle on WSM. Eventually, the stock will have to break either the $88 resistance or the trendline support.
A trader could buy WSM if/when the $88 resistance level is surpassed with the expectation of a breakout. And a short trade could be executed if the stock moves lower and the trendline support is broken.
Keep a close eye out for WSM’s latest earnings report which will be released on August 28th.
Have a good trading day!
Good luck!
Christian Tharp, CMT
WSM shares were trading at $87.95 per share on Monday morning, up $0.83 (+0.95%). Year-to-date, WSM has gained 22.30%, versus a 3.03% rise in the benchmark S&P 500 index during the same period.
Author: Christian Tharp