Quanta Services Rises 3.5% To Near Record High On Bullish Technicals

Quanta Services (PWR) advanced 3.51% in the most recent session, marking two consecutive days of gains with a cumulative 3.82% increase. This technical analysis evaluates key indicators to assess the stock's positioning.
Candlestick Theory
The recent session formed a robust bullish candle closing near the high ($387.37 high, $386.51 close), following a small-bodied candle on 2025-07-02. This pattern suggests conviction in the breakout above the psychological $375 resistance-turned-support zone. Significant resistance emerges near the $387–$388 range, which capped prices twice in late June. A sustained close above $388 would confirm bullish momentum.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages exhibit a bullish alignment (50 > 100 > 200) with slopes ascending, confirming the long-term uptrend. Recent price action rebounded from the 50-day MA around $365, reinforcing it as dynamic support. The 200-day MA near $300 provides a foundational bullish anchor. Short-term averages now slope upward, supporting near-term bullish bias.
MACD & KDJ Indicators
MACD shows a bullish crossover emerging below the signal line, with histogram bars transitioning from negative to positive territory – indicative of building upward momentum. KDJ registers a bullish confluence: K-line (76) and D-line (68) are rising after exiting oversold territory, while J-line (92) approaches overbought conditions. This suggests near-term strength but warrants monitoring for potential overextension.
Bollinger Bands
Price closed near the upper Bollinger Band ($387) amid expanding bands, signaling increasing volatility and bullish momentum. The breakout from a prior band squeeze (late June) preceded the current rally. While proximity to the upper band may imply short-term frothiness, the expansion phase typically supports continuation patterns.
Volume-Price Relationship
Volume declined during the 3.51% rally (869,625 shares vs. 1,164,483 previous session), introducing a minor divergence. However, the preceding up day (07/02) saw higher volume, partially validating the breakout. Volume remains above the 30-day average, suggesting sustained interest. A volume surge above 1.2M shares would strengthen the breakout’s credibility.
Relative Strength Index (RSI)
The 14-day RSI reads 68, nearing overbought territory but not yet exceeding the 70 threshold. This reflects strong momentum without immediate exhaustion signals. The RSI’s ascent from 45 two weeks ago aligns with the price recovery. Historically, PWR has sustained RSI levels between 65–75 during prolonged uptrends, reducing concerns about current readings.
Fibonacci Retracement
Applying Fibonacci levels to the March–July uptrend (swing low: $239.47 on 2025-04-04, high: $387.37 on 2025-07-03), key retracement supports align with recent reactions. The 38.2% level ($330) halted the May decline, while the 23.6% level ($355) supported June pullbacks. Current prices hover near the 0% extension, with the 161.8% extension projecting toward $445 if bullish momentum persists.
Confluence and Divergence
Confluence is observed at $365–$370 (50-day MA, Fibonacci 23.6%, and volume-supported reversal zone), now acting as major support. The MACD/KDJ alignment and Bollinger expansion corroborate near-term bullishness. Notable divergence appears in the volume-price dynamic during the latest surge, warranting caution. RSI proximity to overbought levels may amplify sensitivity to profit-taking near the $387–$388 resistance cluster.
Conclusion
Quanta Services exhibits robust technical positioning, supported by trend-aligned moving averages, emerging momentum oscillators, and volatile breakout confirmation via Bollinger Bands. While volume divergence and RSI near overbought levels imply near-term consolidation risk, the primary trend remains bullish. A decisive close above $388 could trigger an advance toward the $400 psychological barrier, with key support at $375. Traders should monitor volume confirmation on subsequent up days and KDJ overbought signals for timing adjustments.