Retail stock Williams-Sonoma Inc (NYSE:WSM) rose 3.3% to $170.40, aiming to break through the $180 level. Analysts predict a bullish trend as the stock nears its 50-day moving average. Short interest at 5% could lead to significant buying power, while low volatility expectations suggest potential outperformance. (50 words)

The stock is currently within 0.75 of the 50-day moving average’s 20-day average true range (ATR), a historically bullish sign. Similar signals in the past three years resulted in WSM being higher one month later 82% of the time, with an average 7% gain. A move of similar magnitude could push shares above $182. (50 words)

Short interest, though decreasing, still accounts for 5% of the available float, equivalent to over three days of buying power at WSM’s average trading pace. Options traders are pricing in low volatility, with a Schaeffer’s Volatility Index (SVI) of 39%, ranking in the low 4th percentile. The stock’s Schaeffer’s Volatility Scorecard (SVS) of 82 out of 100 indicates potential outperformance. (50 words)

Read more at Yahoo Finance: Buy the Dip on This Retail Stock