Relative Strength High End Retailer Setting up High Tight Bull Flag
Williams-Sonoma (WSM) shares of the specialty retailer are staying wildly strong as they consolidate recent gains above its 21 EMA and now has formed a high tight bull flag. Wednesday printed a bullish hammer candle right off the 21 EMA and now looks ready to run above monthly value for a breakout to 220 and potentially higher. WSM does not report earnings till mid-March but still has buyers of 550 March $175 ITM calls holding in open interest after doubling so far since the 11/20 buyer. BAML boosted its target to $225 from $200 to reflect momentum in high-end existing home sales and furniture spending data.