In today’s stock of the day, I would like to spotlight Wayfair, which is showing increasing bullish momentum and a proper technical signal to buy.
On the chart, we can clearly see the formation of an inverse head and shoulders pattern, marked with yellow shading. This classic reversal setup has already been confirmed by a breakout above the neckline, shown with a black line. The breakout of this neckline typically signals a shift from a bearish to a bullish trend — a meaningful development for any trader tracking Wayfair’s movement.
Another critical element here is the green horizontal area, which historically served as an important support level. After the price broke below it earlier in the year, it flipped into resistance. Now, the price has moved back above this green zone, turning it once again into support — a clear technical win for the bulls. The fact that this key level is being respected again adds further confidence to the bullish thesis.
The final obstacle lies in the red downtrend line, which has been guiding the bearish sentiment for some time. While the stock did close slightly above this line yesterday, a more decisive breakout is still needed to confirm full bullish control and to consider this a clean trend reversal.
Until then, the sentiment is strongly positive — but traders may want to wait for a stronger breakout confirmation to fully validate the long-term buy signal.