PWR pushes through Tuesday's high
Quanta Services Inc. (PWR) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
PWR ended Wednesday at 52.53 gaining $0.54 (1.04%), strongly outperforming the S&P 500 (-0.46%). Trading up to $0.37 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Tuesday's high at 52.46, Quanta Services confirmed its breakout through the previous session high after trading up to $0.53 above it intraday.
Daily Candlestick Chart (PWR as at Sep 16, 2020):
Wednesday's trading range has been $1.01 (1.93%), that's below the last trading month's daily average range of $1.25. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for PWR.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on September 9th, PWR actually lost -2.05% on the following trading day.
While the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's high at 53.61, upside momentum could accelerate should the share be able to break out to new highs for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for Quanta Services. Out of 218 times, PWR closed higher 54.13% 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 56.88% with an average market move of 1.19%.