Trading Idea - Quanta Services Broke Resistance, What to Expect?

Published on Monday, 26 July 2010 06:00 Written by Danny Miller

New York, July 26th (TradersHuddle.com) - Shares of Quanta Services, Inc. (NYSE:PWR) closed the trading session at $22.18 just above calculated resistance at $21.70 moving to what appears to be a new range, as this move will clearly raise the attention of momentum buyers.

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 was trading in a well defined range with support at $20.18 and resistance at $21.70, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that Quanta's stock is still near the broken resistance level, traders will be focusing on $21.70 to see if the stock holds the breakout without rolling over.