Is Rowan Companies Expecting Resistance?
Published on Thursday, 26 April 2012 08:44 Written by TradersHuddle Wire
New York, April 26th (TradersHuddle.com) - Rowan Companies, Inc. (NYSE:RDC) closed the the trading session at $34.00, near its 50 day and 200 day moving averages currently set at $34.81 and $34.25 respectively. Rowan's price action places the stock below these important levels, which makes it difficult to be bought, as it will certainly face resistance as it approaches these important moving averages.
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.
The latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $32.49 and resistance at $34.51. Traders should monitor these levels, as they provide insight into the latest price dynamics in Rowan Companies.
If traders want to establish a position on Rowan Companies, given the heavy resistance expected near the 50 and 200 day moving averages, a trade might be evident as the stock manages to break these moving averages. However, until the break materializes buying the stock is nothing different than flipping a coin.