Quanta Services Hits Record High On 6.77% 3-Day Rally With Bullish Indicators

Quanta Services (PWR) advanced 3.55% to $421.68 in the most recent session, marking its third consecutive daily gain with a cumulative 6.77% rally over this period. The price action reached a new historical high of $424.94 during the session, supported by above-average volume of 1.37 million shares.
Candlestick Theory
Recent candlestick patterns exhibit strong bullish momentum. The stock formed a three-white-soldier formation over the last three sessions, characterized by progressively higher closes with the most recent candle showing a long real body (open $412.60, close $421.68). This indicates conviction following the breakout above the former resistance near $406 established on July 18. Immediate support rests at $397.95 (July 23 low), with the new all-time high of $424.94 acting as psychological resistance. A close above this level could trigger further momentum buying.
Moving Average Theory
The moving average configuration reflects robust bullish alignment. The 50-day SMA ($381.50) maintains its position above both the 100-day SMA ($364.20) and 200-day SMA ($326.80), confirming a major golden cross pattern established earlier this year. Current price trades 10.5% above the 50-day SMA – the widest premium in twelve months – underscoring strong short-term momentum. No significant moving average support exists below until $390 (confluence of 50-day and psychological level), leaving the uptrend vulnerable to profit-taking if immediate supports break.
MACD & KDJ Indicators
MACD shows bullish acceleration with the main line (0.75) crossing above the signal line while both are positioned in positive territory. This coincides with a rising histogram. The KDJ oscillator registers overbought conditions (K:88.2, D:85.4, J:93.8), with the %J line exceeding 90 for the first time since February 2025. While the MACD affirms trend strength, the KDJ’s extreme reading cautions that the rally may be overextended near-term without divergences currently present to warn of reversal.
Bollinger Bands
Price penetrated the upper Bollinger Band ($418.20) during the session before closing back within the bands, confirming breakout momentum while signaling potential exhaustion at current levels. Band width expanded 18% over three days – the most significant volatility surge since April – indicating strong directional conviction. The $418-425 range now represents a tactical resistance zone, with a sustained close above the upper band required to validate continuation. Support aligns with the 20-period moving average at $402.70.
Volume-Price Relationship
Volume analysis offers qualified confirmation. The breakout occurred on 8% above-average volume (1.37M shares vs. 20-day avg 1.27M), though volume trailed the surge seen during similar momentum moves in February and April. Volume disparity emerges: accumulation days (July 17, July 23) saw higher volume than distribution days, preserving the bullish structure. However, decreasing volume on consecutive rallies (July 24 volume -31.6% vs July 23) suggests moderating participation that may limit upside.
Relative Strength Index (RSI)
The 14-day RSI registers at 78.5 – deep in overbought territory for seven consecutive sessions. This matches January 2025 extremes and nears the 12-month peak of 82. While no bearish divergence exists (price and RSI both making new highs), the current reading historically precedes 5-8% pullbacks within bull trends. Traders should monitor for RSI reversal below 70, which could signal profit-taking toward support at $405. RSI above 80 would indicate unsustainable momentum.
Fibonacci Retracement
Using the swing low of $239.58 (August 5, 2024) and new high of $424.94, key Fibonacci levels suggest potential support zones. The 23.6% retracement at $378.70 aligns with the July 22 low where buyers emerged, establishing it as major support. Midpoint support (38.2%) converges with the 100-day SMA at $352 – a high-probability reversal area should a deeper correction occur. The uninterrupted advance from the 23.6% level signals strong trend adherence, with the 161.8% extension at $485 serving as the next technical target on sustained breakouts.
Confluence Note: Multiple indicators validate the primary uptrend (bullish moving average structure, MACD confirmation, Fibonacci adherence). Key risks cluster around tactical overextension (RSI>78, Bollinger Band penetration, KDJ>90), suggesting near-term consolidation above $405 would provide healthier technical grounding. Volume remains the critical watchpoint; acceleration above 1.6M shares on further advances would strengthen breakout sustainability.