The charts and indicators for WSM were already bullish so let's see what the upside looks like. (I have to admit that I love spending time in Williams-Sonoma whenever I am in a mall, even when we are not planning a dinner party.)
In the daily bar chart of WSM, below, we can see some choppy price action but the indicators give us a clear bullish setup. WSM is above both the 50-day moving average line and the bullish 200-day moving average line. Prices broke out to the upside from a nine-month consolidation pattern gapping above the 50-day and 200-day averages in late May. After a rally from below $48 to $66 prices corrected on lighter volume for about six weeks. Strength returned in early August.
The On-Balance-Volume (OBV) line shows a rise from November with a new high possible now. The Moving Average Convergence Divergence (MACD) oscillator gave a cover shorts buy signal earlier this month and could soon cross above the zero line for an outright go long signal.
In the weekly bar chart of WSM, below, we can see a large base/bottom pattern from early 2016 until late May when prices broke out on the upside. The 40-week moving average line is bullish and the weekly OBV rise confirms and supports the advance.
The weekly MACD oscillator shows a take profits sell signal but that is likely to be reversed as WSM rallies.
In this Point and Figure chart of WSM, below, we can see a $73.22 price target.
Bottom-line strategy: Back in June, we recommended that "If you brought WSM on the breakout above $57, hold and raise sell stops to your entry price. Our price target is $74. Shallow dips could be used to add to your initial position." Longs should raise stops to at least $60, and $74 is still our price target.