Quanta Services Inc (NYSE: PWR)

Quanta Services, Inc. provides specialty contracting services to the electric power, and oil and gas industries in North America and internationally. The company’s Electric Power Infrastructure Services segment provides network solutions comprising design, installation, upgrade, repair, and maintenance of electric power transmission and distribution infrastructure, and substation facilities. The company’s Oil and Gas Infrastructure Services segment provides network solutions to customers involved in the development and transportation of natural gas, oil, and other pipeline products. The company’s Fiber Optic Licensing and Other segment designs, procures, constructs, maintains, and owns fiber optic telecommunications infrastructure, as well as licenses the right to use these point-to-point fiber optic telecommunications facilities to its customers.
Take a look at the 1-year chart of Quanta (NYSE: PWR) with the added notations:

PWR chopped its way lower into the end of 2015, but the stock finally bottomed in December. Since leveling out a bit, PWR has found support near $27.50 (green) several times. Now that the stock appears to be falling back down to that support level again, traders could expect some sort of bounce. However, if the $27.50 support were to break, lower prices should follow.

The Tale of the Tape: PWR has an important level of support at $27.50. A trader could enter a long position at $27.50 with a stop placed under the level. If the stock were to break below the support a short position could be entered instead.