PWR dominated by bulls lifting the market higher throughout the day
Quanta Services Inc. (PWR) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, PWR ended the week 9.29% higher at 34.25 after gaining $0.40 (1.18%) today on low volume, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 34.06, the share confirmed its breakout through the previous session high after trading up to $0.22 above it intraday.
Daily Candlestick Chart (PWR as at May 22, 2020):
Friday's trading range has been $0.46 (1.36%), that's far below the last trading month's daily average range of $1.31. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for PWR.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on May 8th, PWR actually lost -4.05% on the following trading day.
Prices are trading close to the key technical resistance level at 34.97 (R1).
Quanta Services shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the nearby swing high at 35.78 where further buy stops might get triggered. As prices are trading close to May's high at 36.07, upside momentum could accelerate should the stock mark new highs for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for Quanta Services. Out of 305 times, PWR closed higher 53.77% 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 five trading days, showing a win rate of 55.41% with an average market move of 0.20%.