Quanta Services Inc. declined from $35.39 to $10.56 in 2008 (A-B) had a recovery rally to $25.80 (C) and then settled in a horizontal trading range mostly between $17 and $24 (dashed lines). The recent rise to $26.07 signalled the breakout from this range and the start of a new up-leg. Only a decline below the 40-week moving average (currently about $22.50) would suggest additional base-building is required.
Point & Figure measurements provide targets of $29 and $33. The large trading range (dashed lines) supports higher targets.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.
Chart source: www.decisionplus.com
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