WSM is about to break out

Williams-Sonoma (WSM) is positioned to break out from an early 2025 into early 2026 bullish cup and handle. A decisive rally above 210-220 would confirm this pattern and suggest upside potential to 250 (100% extension of the rally from the cup low to handle high projected from the handle low) and then higher to 290-300 (cup and handle pattern count and 161.8% extension).

Until that breakout occurs, the immediate pattern for WSM remains bullish above the 197-194 range. Rising 26- and 40-week moving averages from 192 down to 181 reinforce this constructive setup for WSM.

WSM is improving relative to the S&P 500 and sustaining the breakout above the weekly moving averages and downtrend line vs. the index would maintain this constructive bias.

Chart 1: Williams-Sonoma (WSM) (top) and relative to the S&P 500 (bottom)