Trading Idea - Is Quanta Services close to Resistance?

Published on Friday, 30 December 2011 08:46 Written by Christian Paolinetti

New York, December 30th (TradersHuddle.com) - Shares of Quanta Services, Inc. (NYSE:PWR) are trading very close to calculated resistance at $21.95 with the current price action closing at just $21.58 placing the stock near levels that make it difficult to buy.

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 current calculated support defined at $19.74 and by the resistance level at $21.95, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Quanta Services, as the stock is well above support, however, as the stock pulls back towards $19.74 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $21.95 then traders will get an opportunity to enter Quanta Services stock by establishing a position as the stock moves to a higher range.