Shares of retailer Williams Sonoma are extending Friday’s earnings inspired surge with another 2% of upside. WSM is bumping up against heavy supply at today’s high after gaining 20% off the late May lows. Since the giant post earnings breakdown back in mid November of last year(earnings) WSM has been unable to clear the $61.00 area. This key zone has capped the December, March, April and now June highs. A clear break above the April 2019 peak could spark quite a run.
Highlights: WSM sports a very high short interest ratio(11.9). This is a considerable amount of upside fuel.
Solid support is now in place between $59.00 and $57.00. A close back below $57.00(this week’s low) would indicate more sideways action will be needed before a new 2019 highs can be reached.
At current levels we regard WSM as a fairly low risk buy. On the downside, a close back below $56.00 would violate the Friday lows indicating the post earnings momentum is waning.
At time of publication we do not have a position in WSM.