Williams-Sonoma, Inc. is an omni-channel specialty retailer for home products. Its brands include Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home, Rejuvenation, and Mark and Graham are marketed through e-commerce Websites, direct-mail catalogs and retail stores. These brands are also part of the Co.'s loyalty and credit card program that offers members benefits across the Williams-Sonoma family of brands. Williams Sonoma products include everything for cooking, dining and entertaining, including cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture and a library of cookbooks.
When researching a stock like Williams Sonoma, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from WSM Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for WSM stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the WSM 200 day moving average ("WSM 200 DMA"), while one of the most popular "shorter look-backs" is the WSM 50 day moving average ("WSM 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Williams Sonoma. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the WSM 200 DMA and the WSM 50 DMA, we get a moving average convergence divergence indicator ("WSM MACD"). The WSM MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |
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Video: Technical Analysis