PWR closes higher for the 3rd day in a row
Quanta Services Inc. (PWR) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, PWR finished Thursday at 31.49 gaining $1.08 (3.55%) on low volume, notably underperforming the S&P 500 (6.24%). Closing above Wednesday's high at 31.37, the stock confirmed its breakout through the previous session high after trading up to $0.96 above it intraday.
Daily Candlestick Chart (PWR as at Mar 26, 2020):
Thursday's trading range has been $1.92 (6.22%), that's slightly below the last trading month's daily average range of $2.14. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for PWR.
Buyers managed to take out the key technical resistance level at 31.19 (now S1), which is likely to act as support going forward.
Although the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Quanta Services. Out of 262 times, PWR closed higher 53.44% 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 57.25% with an average market move of 0.40%.