Quanta Services Is Near a Key Resistance Area

Published on Thursday, 09 August 2012 08:16 Written by TradersHuddle Wire

New York, August 9th (TradersHuddle.com) - Shares of Quanta Services, Inc. (NYSE:PWR) are trading very close to calculated resistance at $25.07. The stock ended the trading session at just $24.76, which is near levels that make it difficult to buy or start a position.

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 stock range is defined by its calculated support defined at $21.63 and by the resistance level at $25.07; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for Quanta Services. However, as the stock pulls back towards $21.63 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $25.07 then traders will get an opportunity to enter the stock as it moves to a higher range.