Don't Ignore This Chart!

Quanta Services Breaks out of Consolidation


Quanta Services (PWR) is showing signs of a long-term trend reversal with its third resistance break this year. The weekly chart shows PWR breaking down in October 2014 and trending lower until early 2016. This downtrend showed its first sign of reversing with the February surge and breakout near 19. The second breakout occurred with the move above the November high in April 2016. After exceeding its November high, the stock embarked on a consolidation in the 22-24 area. It now looks like this consolidation is ending because the stock broke above the April-May highs with a surge the last two weeks. I would mark support in the 21.5-22 area. Chartists can re-evaluate on a close below 21.50 and an RSI move below 50. 

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--Arthur Hill CMT

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Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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