Trading Idea: Is Rowan Companies Breaking Down?

New York, May 9th (TradersHuddle.com) - Shares of Rowan Companies, Inc. (NYSE:RDC) closed the trading session at $32.31 below calculated support at $32.49. The stock broke long setups, prompting the bulls to worry that this move might give the bears the upper hand.

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's stock was trading in a well defined range with support at $32.49 and resistance at $36.22; given that this range was broken traders will be closely monitoring the stock's price action for clues of direction.

From a technical perspective, it can be expected that previous support becomes resistance, as the new range gets defined. However, $32.49 will remain in focus as Rowan's price action places the stock near the broken support. Traders will be waiting to see if it can bounce back and return to its previous range.

Traders wanting to establish a short position in Rowan Companies can do so if the stock breaks the intraday low, or if the stock bounces back and selling materializes again at previous support of $32.49. However, if traders want to build a long position, the best entry point to do so is when the price action takes the stock back to calculated support.



Related Partner Headlines

    You could minimize risk by trading in stock sectors rather than individual stocks. Find out why ETFs are the hottest investment vehicle on the planet. Try ETF Profits for FREE NOW!

    TradersHuddle Search

    Stock Search:


    Site Search:

    Loading

    Technical Scans

    Recent Trading Ideas

    Latest Partner Headlines

    Stock Market

    Loading
    Chart
    o Dow Jones 17,086.63 ▼26.91 (-0.16%)
    o S&P 500 1,987.01 ▲3.48 (0.18%)
    o NASDAQ 4,473.70 ▲17.68 (0.40%)
    INDEXDJX:.DJI

    Dow Jones

    Company ID [INDEXDJX:.DJI] Last trade:17,086.63 Trade time:4:31PM EDT Value change:▼26.91 (-0.16%)
    INDEXSP:.INX

    S&P 500

    Company ID [INDEXSP:.INX] Last trade:1,987.01 Trade time:4:31PM EDT Value change:▲3.48 (0.18%)
    INDEXNASDAQ:.IXIC

    NASDAQ

    Company ID [INDEXNASDAQ:.IXIC] Last trade:4,473.70 Trade time:5:15PM EDT Value change:▲17.68 (0.40%)

    In The Wires

    Copyright © 2013 TradersHuddle.com. All Rights Reserved.