Quanta Services near Support

Published on Thursday, 26 January 2012 08:00 Written by Danny Miller

New York, January 26th (TradersHuddle.com) - Shares of Quanta Services, Inc. (NYSE:PWR) finished near calculated support at $20.59.

Current price action with, the specialized contractor to electric utilities, telecommunication and cable television operators closed at $21.48 has left shares at a level that needs to be monitored closely by traders wanting to start or add into a position in the stock.

Quanta's current stock range is defined by current calculated support defined at $20.59 and by the resistance level at $22.30.

The area defined as calculated support, is where we expect for buyers to likely materialize, which could provide a lift to the shares. However, this area if breached will signal participants that the stock failed to entice buyers to step in an support the stock.

Traders wanting to establish a position should pay close attention to Quanta's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $22.30 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.