Quanta Services Inc. (Friday’s close $41.08) rallied from $16.77 in February, 2016 to $38.82 in February, 2017 (A-B) and then stayed in a horizontal trading range mostly between $30 and $40 for the subsequent three years (dashed lines).
The recent rise above the top of this range (a 17-year high) signaled a breakout and the start of a new up-leg toward significantly higher targets (C). The recent minor pullback toward the 40-week Moving Average (40wMA) should provide a good entry level.
Behaviour indicators including the rising 40wMA and the rising trend-line (solid line) confirm the bullish status. Only a sustained decline below ±$38 would be negative.
Point & Figure measurements provide targets of $49 and $54. The large trading range (dashed lines) supports higher targets.
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Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
Monica Rizk
Ron Meisels