PWR stuck within tight trading range
Quanta Services Inc. (PWR) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PWR finished the month 6.23% higher at 39.23 after edging higher $0.11 (0.28%) today, notably underperforming the S&P 500 (1.54%). Trading up to $0.24 lower after the open, Quanta Services managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (PWR as at Jun 30, 2020):
Tuesday's trading range has been $0.59 (1.51%), that's far below the last trading month's daily average range of $1.32. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for PWR. Prices continued to consolidate within a tight trading range between 38.03 and 39.36 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern.
After having been unable to move lower than 38.81 in the prior session, the market found buyers again around the same price level today at 38.75. The last time this happened on June 19th, PWR gained 1.34% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 39.36 where further buy stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Quanta Services. Out of 62 times, PWR closed higher 64.52% 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 56.45% with an average market move of 0.66%.