Rowan Companies Waiting for a Break Out?

Published on Wednesday, 11 January 2012 08:40 Written by Christian Paolinetti

New York, January 11th (TradersHuddle.com) - Shares of Rowan Companies, Inc. (NYSE:RDC) closed the trading session at $31.78 near its 50 day moving average currently set at $32.65. Rowan's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 50 day.

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.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $29.04 and calculated resistance at $32.20. These levels will be closely watched by traders, as they provide great insight into the latest price dynamics defined by Rowan Companies shares.

Traders should evaluate their trade if they want to establish a position on Rowan Companies given the resistance expected as the stock approaches the 50 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price level reference points.