Quanta Services Jumps 3.42% As Technicals Signal Bullish Momentum

Quanta Services (PWR) advanced 3.42% in the latest session, closing at $402.87. This analysis evaluates the technical structure using multiple frameworks.
Candlestick Theory
The session formed a robust bullish candle closing near its high ($402.87) after testing support at $396.37. This follows a hammer pattern on September 18th at $376.07, reinforcing the $385–$390 zone as critical support. Resistance is evident near the all-time high of $423.50 (July 31st), with secondary resistance at $407.08 (September 24th high). The engulfing pattern over the prior two sessions signals bullish conviction.
Moving Average Theory
The 50-day MA ($385) recently provided support during the September 23rd pullback. More significantly, the 50-day, 100-day, and 200-day MAs maintain a bullish ascending order (200-day: $340, 100-day: $370, 50-day: $385), confirming the primary uptrend. The price trading above all three MAs indicates sustained bullish momentum, though a close below the 50-day MA could signal near-term weakness.
MACD & KDJ Indicators
The MACD histogram has shifted to positive territory, indicating strengthening momentum after a brief bearish crossover. The KDJ oscillator exited oversold conditions (<20) on September 18th, with the %K line crossing above %D, triggering a bullish signal. However, both indicators remain below overbought thresholds, suggesting further upside potential.
Bollinger Bands
Bollinger Bands contracted significantly in mid-September, reflecting reduced volatility before the recent breakout. The latest close near the upper band ($410) highlights increasing bullish pressure. A sustained move above this band would confirm breakout validity, while rejection here may trigger a retest of the 20-day middle band ($395).
Volume-Price Relationship
The 3.42% advance on September 24th occurred on 1.66M shares – the highest volume in two weeks – validating bullish conviction. Notably, the September 18th rally (+3.89%) accompanied elevated volume, confirming accumulation at support. Declining volume during pullbacks (e.g., September 19th–23rd) signals limited selling pressure.
Relative Strength Index (RSI)
The 14-day RSI (58) rebounded from near-oversold levels (35 on September 18th) but remains below the overbought threshold. This suggests room for further upside without immediate exhaustion risk. However, divergence occurred in late August when price made higher highs while RSI declined, which preceded the September correction.
Fibonacci Retracement
Using the swing low of $245.20 (April 7th) to the high of $423.50 (July 31st), key retracement levels are:
- 23.6% ($390) – recent support zone
- 38.2% ($365) – aligns with the 100-day MA
- 50% ($334) – converges with the 200-day MA.
The price rebounded precisely at the 23.6% level ($390) on September 23rd–24th, reinforcing this Fibonacci level as tactical support.
Confluence and Divergence
Bullish confluence exists at $390, where Fibonacci support, the 50-day MA, and volume-backed price reversal align. Bearish divergence was observed in late August between price and RSI. Currently, MACD, KDJ, and volume confirm the rebound, while Bollinger Band expansion supports breakout continuation. The primary caution is proximity to the all-time high ($423.50), which may attract profit-taking near $410–$415.
In summary, Quanta Services exhibits robust technical structure with momentum indicators supporting further upside. Key support remains at $390, with a break above $410 opening a path toward the $423.50 record high. However, failure to surpass $407–$410 may prompt consolidation. Volume sustainability will be critical for confirming trend continuation.