PWR finds support at 20-day moving average
Quanta Services Inc. (PWR) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PWR finished the month 1.89% higher at 39.97 after edging lower $0.15 (-0.37%) today, strongly underperforming the S&P 500 (0.77%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (PWR as at Jul 31, 2020):
Friday's trading range has been $1.12 (2.8%), that's slightly above the last trading month's daily average range of $1.05. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PWR.
Two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji. The last time a Southern Doji showed up on March 19th, PWR actually lost -6.86% on the following trading day.
After trading as low as 39.20 during the day, the market found support at the 20-day moving average at 39.49.
While the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Quanta Services. Out of 428 times, PWR closed higher 60.51% 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 54.67% with an average market move of 0.87%.