PWR breaks back below 100-day moving average
Quanta Services Inc. (PWR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
PWR finished the week 4.14% higher at 40.50 after losing $0.30 (-0.74%) today, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (PWR as at Feb 14, 2020):
Friday's trading range has been $0.71 (1.74%), that's slightly below the last trading month's daily average range of $0.79. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PWR. Prices continued to consolidate within a tight trading range between 40.12 and 41.13 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Quanta Services closed back below the 100-day moving average at 40.52. When this moving average was crossed below the last time on January 27th, PWR actually gained 1.54% on the following trading day. After having been unable to move above 40.89 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 40.90.
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could speed up should prices move above the close-by swing high at 41.13 where further buy stops might get activated. With prices trading close to this year's high at 41.56, upside momentum could accelerate should the stock be able to break out to new highs for the year. Trading close to December's high at 41.88 we might see further upside momentum if potential buy stops at the level get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 100" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Quanta Services. Out of 67 times, PWR closed higher 61.19% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 55.22% with an average market move of 0.54%.