WSM is in a similar position as it was in beginning Feb 2023. Stock fell from the same level (high of approx. 145) to a low of about 125. Unlike in Feb 2023 when the stock bounced to 130 before falling again, this time, it has again reached the high of 145.
A cup and handle formation along with a bullish pennant seem bullish. However, the neckline of the large W formation hasn't been clearly broken. If WSM breaks it with increasing volume, upward movement likely to continue. However, if the stock loses steam at this level, it is likely to meet the fate it met in Feb 2023.
In Feb 2023, overall market was going down. This time, it's going up. Squeeze Momentum has just turned green showing bullish move ahead.
Scenario will be clearer next week.
A cup and handle formation along with a bullish pennant seem bullish. However, the neckline of the large W formation hasn't been clearly broken. If WSM breaks it with increasing volume, upward movement likely to continue. However, if the stock loses steam at this level, it is likely to meet the fate it met in Feb 2023.
In Feb 2023, overall market was going down. This time, it's going up. Squeeze Momentum has just turned green showing bullish move ahead.
Scenario will be clearer next week.