Trading Idea - Is Rowan Companies close to Support?

Published on Wednesday, 01 February 2012 09:20 Written by Danny Miller

New York, February 1st (TradersHuddle.com) - Shares of Rowan Companies, Inc. (NYSE:RDC) are trading very close to calculated support at $33.72 with current price action closing at just $34.01 places the stock price near levels where traders will start paying attention.

Rowan's current stock range is defined by current calculated support defined at $33.72 and by the resistance level at $36.25, which should be used by traders planning their trades. These support and resistance levels are based on an algorithm of peaks and troughs of the stock price action.

Traders wanting to establish a position should place close attention to Rowan's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $36.25 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.

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.