An oversold bounce has benefitted many stocks over the past two weeks. To preserve gains in counter-trend positions, we recommend tightening stop-loss levels. In following, we are raising our stop-loss for existing idea Hibbett (HIBB) to $47.78 from $45.10.
Our newest idea is Quanta Services (PWR) which caught our attention with this week’s outperformance:
PWR has cleared its 50-day (~10-week) moving average decisively after making a higher low above long-term cloud-based support. The weekly stochastics have turned higher, which suggests that the uptrend has resumed.
The breakout is associated with newly positive short-term momentum and a daily stochastic “pop”, which supports upside follow-through. In relative terms, PWR has proven to be a long-term outperformer and its ratio versus the S&P 500 Index (SPX) is extending to new highs.
Support for PWR can be gauged by the daily cloud model, which is near $119. A measured move projection, which is depicted on the chart below, generates a long-term upside objective of ~$152.
Quanta Services (PWR, $128.50)
Target: $152
Stop-Loss: $119