In today's technical analysis, we’re taking a closer look at Wayfair, which is currently showing a strong bullish setup backed by multiple technical breakouts. The stock is delivering a clear buy signal that could mark the beginning of a longer-term uptrend.
At the center of this bullish scenario is an inverse head and shoulders pattern, a classic bottoming formation that signals a reversal from bearish to bullish sentiment. This pattern, marked with blue coloring, has now been activated—Wayfair successfully broke above the green neckline, confirming the breakout and generating a long-term buy signal.
But the bullish picture doesn’t end there.
Wayfair also cleared a significant orange horizontal resistance level, which had previously acted as a key support going back to October 2023. Reclaiming this level after months of trading below it adds weight to the positive outlook.
Even more importantly, the price has broken above a descending red trendline, which had been suppressing upward movement since May 2024. This break of lower highs suggests that bearish momentum has been thoroughly exhausted, and buyers are taking control of the chart.
With Wayfair now trading above all three key resistance areas—the inverse head and shoulders neckline, the horizontal barrier, and the long-standing downtrend line—the technical sentiment shifts decisively in favor of the bulls. As long as the price holds above these breakouts, the outlook remains positive, and the stock may be setting up for a sustainable upward run.