Wayfair began March with a significant technical breakdown, delivering a clear long-term sell signal. The trigger came with a decisive move below the key horizontal support at $38, marked with a blue line. This support had previously held since late 2023, making the breakdown particularly meaningful from a technical perspective.
On Friday, however, Wayfair posted a strong bullish session, staging a pullback toward the broken support. This creates a classic technical setup: a broken support potentially being tested as new resistance. The price is now approaching the $38 level again, and what happens next will likely determine the broader trend for weeks to come.
If the price bounces off the blue area and forms a bearish rejection (like a shooting star or bearish engulfing), it will confirm the negative sentiment and likely open the way for further declines. On the other hand, if Wayfair closes back above the $38 level, that would invalidate the breakout, signaling a false breakdown, which in turn could be a strong buy signal with potential for a broader reversal.
All eyes are now on the $38 zone. The way Wayfair behaves around this level will guide traders on the next big move.