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WSM — Trend Pullback to 20 EMA
Status: Invalidated
Scanner score: 65.0/100
Why this was flagged
WSM was identified as a bullish technical setup based on the Trend Pullback to 20 EMA pattern. The scanner found a score of 65.0/100 using trend alignment, momentum, price action, volume, and risk-management rules. Monitor update: Latest daily-chart analysis no longer reports a bullish long setup.
Trade framework
Position-sizing example
These examples use the distance between the reference entry and stop-loss. They do not account for commissions, slippage, taxes, overnight gaps, or your personal account size.
Exit plan
- Stop-loss: Exit if the stop-loss is reached. Do not move the stop farther away to avoid taking the planned loss.
- Target 1: Consider taking partial profit when Target 1 is reached and reducing risk on the remaining shares.
- Target 2 or trailing exit: Consider closing the remaining position at Target 2, or use a disciplined trailing stop only if the trend remains strong.
- Time exit: Reassess or close a trade that fails to progress within the suggested holding window.
Technical chart
Daily closing price with moving averages and planned trade levels. This chart is a screening aid, not a guarantee of future results.
$1,000 educational outcome examples
These examples use a $1,000 position and fractional shares at the midpoint of the entry zone. Actual results can differ because of market gaps, fills, spreads, commissions, taxes, slippage, and changing conditions.
Easy explanation for new investors
The scanner found Williams-Sonoma Inc (WSM) using a pattern called a Trend Pullback to 20 EMA. This means the stock is in an upward trend, but its price has recently dipped back toward a specific average line called the 20 EMA. The 20 EMA is a tool that shows the average price over the last 20 days. Right now, the price is above its 20, 50, and 200-day moving averages. This shows the long-term direction is upward. The RSI, which measures how fast prices are changing, shows healthy momentum without being too high.
What the price plan means
The entry zone is between $226.74 and $228.44. If the price stays in this area, there are two potential targets: $247.15 and $257.35. To manage risk, a stop-loss is set at $216.53. This is a price point where the idea would no longer be valid. The reward-to-risk ratio is 2, which means the potential gain is twice as large as the potential loss.
What could make the idea fail
The setup could fail if the price drops below the stop-loss level of $216.53. Also, the relative volume is currently 0.72, meaning there is less trading activity than usual.
Important reminder
This information is for educational purposes only and does not constitute financial advice.
Recent news context
This automated review is separate from the technical score. It summarizes recent related articles and does not predict price movement.
Overall context: Caution (High confidence)
Williams-Sonoma Inc (WSM) shows mixed signals. While the company has a history of significant dividend payouts, totaling $1.08 billion over five years, and recently reported strong quarterly results with an EPS of $1.93, analyst sentiment is divided. Some reports indicate a 'Moderate Buy' consensus, but several analysts have set average price targets (ranging from $200.00 to $213.12) that are below the current trading price of $226.74. Additionally, while institutional ownership is high at 99.29%, there has been notable movement in large holdings, including a significant reduction in stake by Andra AP fonden.
Potentially supportive context
- Strong historical dividend performance with $1.08 billion distributed over five years.
- Reported strong quarterly results with EPS of $1.93 on revenues of $1.81 billion.
- High institutional ownership level of 99.29%.
Risks and caution items
- Multiple analyst average price targets ($200.00 - $213.12) are below the current market price.
- Mixed analyst ratings and varying price objectives.
- Significant reduction in stake by Andra AP fonden (86.5% decrease).
- Valuation score of 7.50 ranks 67th out of 94 in the Specialty Retailers industry.
Latest reviewed article: Jul 25, 2026 9:40 am
Recent related articles
This article provides a detailed revenue breakdown for Williams-Sonoma Inc (WSM), categorized by business segments and regional contributions. As of the updated figures on April 6, FY2026, Pottery Barn is the largest segment, followed by West Elm and Williams Sonoma, with the…
This article details the historical dividend payouts and stock splits for Williams-Sonoma Inc (WSM). It provides a chronological list of dividend declarations, including record dates, payment dates, and ex-dividend dates, showing a total of 1.08 billion USD distributed in dividends over the…
This article provides an earnings forecast for Williams-Sonoma Inc (WSM), highlighting its current earnings forecast score of 7.04, ranking 53 out of 94 in the Specialty Retailers industry. Analysts have an average price target of $200.00 for WSM, with most recommending a…
Williams-Sonoma Inc. (WSM) is trading at $226.14, up 3.45%, with strong fundamentals and high growth potential, though its valuation is considered fair. Analysts have a "Buy" rating with a target price of $211.60, and the stock is expected to trend upwards in…
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Somnigroup International Inc. (SGI) is navigating a period of integration and strategic growth following its Mattress Firm acquisition. The company's future performance relies heavily on realizing acquisition synergies, expanding its international footprint, and maintaining operational discipline, particularly against a backdrop of muted…
Williams-Sonoma Inc (WSM) currently holds a valuation score of 7.50, placing it 67th out of 94 in the Specialty Retailers industry. Its P/E ratio stands at 24.19, which is below its recent high but significantly above its recent low. Key valuation metrics…
Dimensional Fund Advisors LP increased its stake in Williams-Sonoma (NYSE:WSM) by 1.4% in the first quarter, now holding over 1.4 million shares valued at $269.6 million. This comes after Williams-Sonoma reported stronger-than-expected quarterly results, with EPS of $1.93 on revenues of $1.81…
Important: Some returned articles may describe competitors, industry conditions, or related companies. Open the source before relying on an article.
Scanner confirmations
- Price is above the 20-, 50-, and 200-day moving averages, with bullish moving-average alignment.
- RSI is in a constructive momentum range without being overbought.
- Price is near the 20 EMA in a bullish trend and the current candle is positive.