Rowan Companies Is in a Well Defined Range

New York, May 1st ( - Rowan Companies, Inc. (NYSE:RDC) closed the trading day at $34.53, near its 50 day and 200 day moving averages set at $34.65 and $34.22 respectively. Rowan's price action placed the stock above the 200 day moving average but below its 50 day moving average, a setup that signals a possible break out.

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 Companies seems to be setting up for a tight range between the 200 day moving average as support and the 50 day moving average serving as resistance.

A tiered approach, appears to be the best strategy to maximize possible movements in the stock, as traders could establish a small position in Rowan Companies and wait for the stock to break out above its 50 day moving average at $34.65. Then they could add to the position as momentum builds with the breakout. On the flip side, if support being referenced at the 200 day moving average set at $34.22 breaks, it could signal further downside pressure for Rowan Companies.

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