Is Rowan Companies Resistance Ahead?

Published on Thursday, 19 April 2012 08:28 Written by TradersHuddle Wire

New York, April 19th (TradersHuddle.com) - Rowan Companies, Inc. (NYSE:RDC) closed the trading session at $32.86, near its 200 day moving average set at $34.38. Rowan's stock action is below this level, which makes the stock difficult to be bought, as it will face resistance as it approaches its 200 day moving average.

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, placed calculated support at $30.84 and resistance at $34.14. Traders should closely monitor these levels, as they provide great reference points for the latest price action in Rowan Companies.

If traders want to establish a position on Rowan Companies, given that resistance could materialize as the stock approaches its 200 day moving average, a trade might materialize as the stock manages to break this important level. After the breakout, the 200 day moving average could be used as support going forward. However, until the break materializes, traders need to exercise patience.