Fourth Time The Charm?
As a national specialty retailer of fine quality cooking and serving
equipment, home furnishings and garden accessories, Williams-Sonoma
(
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is marketed through 370 retail stores and five mail order catalogs. The
stock has been doing some cooking of its own in recent weeks, rising from its
December low at $16 per share to its intraday high of 28.20 in today’s session.
This price action has it closing in on triggering what Jeff Cooper calls a
“Rule of Four Breakout” when a stock takes out a triple top.
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Another factor that makes this setup attractive is that the
triple top is right in the middle of the gap created by the October
bloodletting. Since you rarely see quadruple tops, if WSM can manage to violate
the triple top and the resistance of the large gap, there is a very good chance
the issue could make a move back toward the October high, with a possible move
to the September highs if that can be recaptured.
Until tomorrow,
Duke