Quanta Services Stock Rises 3.17% Nears Yearly High Amid Bullish Signals

Quanta Services (PWR) shares rose 3.17% in the most recent session, marking the third consecutive day of gains and bringing the 3-day rally to 4.93%. This upward momentum positions the stock near its yearly high, warranting a multi-faceted technical evaluation to assess sustainability and potential inflection points.
Candlestick Theory
The recent price action exhibits a bullish "Three White Soldiers" pattern, characterized by three consecutive ascending candles closing near session highs. The latest long green candle (June 3: low $347, close $356.49) signals strong buying conviction after breaching the $347–$350 resistance zone. Key support rests at $337–$340 (May 29–30 lows), while resistance converges around the all-time high of $358.03 (January 24 peak). A decisive close above $358 would confirm bullish continuation, whereas rejection near this level may trigger short-term profit-taking.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages display a bullish alignment (50 > 100 > 200), confirming a sustained uptrend. The current price ($356.49) trades comfortably above all three averages, with the 50-day MA (~$335) providing dynamic support. The absence of bearish crossovers suggests persistent demand dominance. However, the widening gap between price and the 50-day MA (~6.5% premium) hints at potential near-term mean reversion pressure.
MACD & KDJ Indicators
The MACD histogram remains positive territory, with the MACD line sustaining above its signal line since mid-May, signaling ongoing bullish momentum. The KDJ oscillator, however, shows %K at 96.12—deeply overbought (>80)—after the recent surge. While MACD supports trend continuation, KDJ overextension suggests waning upside momentum. A bearish KDJ crossover or MACD line convergence would warn of short-term exhaustion.
Bollinger Bands
Price touched the upper Bollinger Band ($357) on June 3, coinciding with the session high. The bands have expanded 15% over the past week, reflecting rising volatility during the breakout. Historically, such upper-band tests led to brief consolidations (e.g., January 24). Current price proximity to the upper band, combined with bandwidth expansion, implies elevated near-term pullback probability to the midline ($345–$348).
Volume-Price Relationship
The breakout was validated by robust volume (1.13 million shares on June 3 vs. 30-day average of 1.05 million), confirming bullish conviction. Notably, the May 22 sell-off (1.88M shares) saw higher volume than the subsequent recovery rallies, indicating lingering resistance. Sustained volume above 1.1M shares is critical for overcoming the $358 barrier, while volume deterioration below 0.8M shares would undermine upside credibility.
Relative Strength Index (RSI)
The 14-day RSI (currently ~78) resides deeply in overbought territory (>70), echoing KDJ’s warning. This is the most elevated RSI reading since the January peak. While not immediately reversal-forcing, such levels historically preceded 3–5% pullbacks (see January 25 and April 1). Traders should monitor for bearish divergence if price makes marginal new highs while RSI retreats.
Fibonacci Retracement
Applying Fib levels to the major downtrend from $358.03 (January high) to $245.20 (April low), the recovery has achieved 100% retracement ($358.03). This convergence of psychological and technical resistance at the prior peak creates a high-probability reversal zone. Should buyers overcome $358, projected extensions target $374 (127.2% Fib). Conversely, failure here may retest $342–$345 (78.6% retracement support).
Confluence and Divergence Observations
Confluence exists between RSI/KDJ overbought signals, Fibonacci resistance at $358, and Bollinger Band proximity, heightening reversal probability near current levels. However, MACD’s bullish stance and volume-backed breakout lend credibility to the uptrend. The critical divergence lies in weakening momentum oscillators versus price strength—a condition that typically resolves through either consolidation or correction. Given the bullish MA alignment and volume confirmation, a shallow retreat to $345–$350 appears more probable than a deep reversal, provided the $340 support holds.