Is Quanta Services Trade Over?

Published on Thursday, 29 July 2010 02:39 Written by Christian Paolinetti

New York, July 29th (TradersHuddle.com) - Shares of Quanta Services, Inc. (NYSE:PWR) ended the trading session lower by $0.28 or -1.27% from its previous close. Quanta's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Quanta Services, Inc. (NYSE:PWR) provides specialized contracting services to electric utilities, telecommunication and cable television operators, and governmental entities. The Company also installs transportation control and lighting systems and provides specialty electric power and communication services for industrial and commercial customers.

Quanta's current stock range is defined by calculated support defined at $20.18 and by the resistance level at $21.7, which should be used by traders planning their trades.

Traders wanting to establish a position in Quanta Services stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current Quanta Services shares price action. The Bearish engulfing pattern is a leading warning sign, therefore traders should closely monitor price action for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: