Rowan Companies near Resistance

Published on Friday, 06 January 2012 07:08 Written by Danny Miller

New York, January 6th (TradersHuddle.com) - Shares of Rowan Companies, Inc. (NYSE:RDC) are trading very close to calculated resistance at $32.20 with the current price action closing at just $31.15 placing the stock near levels that make it difficult to buy.

Rowan Companies, Inc. (NYSE:RDC) provides contract drilling services. The Company also owns and operates a manufacturing division that produces equipment for the drilling, mining and timber industries.

Rowan's current stock range is defined by current calculated support defined at $29.04 and by the resistance level at $32.20, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Rowan Companies, as the stock is well above support, however, as the stock pulls back towards $29.04 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $32.20 then traders will get an opportunity to enter Rowan Companies stock by establishing a position as the stock moves to a higher range.