Quanta Services is trading in a bullish trend and several arguments are in favor of the continuation of this trend.

The company’s fundamentals are still strong. Sales and benefits are going up for several years, and this trend should continue in the next fiscal years. Moreover, the cashflow is growing and expected to reach 1 billion dollars in 2016.

Technically, the security is in an uptrend on all time scales and it is supported by moving averages. The bullish trend will not be stopped until prices are above the USD 36.1 pivot point. This trend should allow the stock to reach its USD 40.8 long term resistance, which will be the first target price.

Thanks to these good indicators, it seems relevant to take a long position in Quanta Services on the breakout of USD 37.2. The target price is the USD 40.8 resistance. A stop loss will be set under at USD 35.8.