Is Rowan Companies Closing in to Resistance?

Published on Thursday, 21 June 2012 08:04 Written by TradersHuddle Wire

New York, June 21st (TradersHuddle.com) - Shares of Rowan Companies, Inc. (NYSE:RDC) are trading very close to calculated resistance at $32.19. The stock ended the trading session at just $31.65, which is near levels that make it difficult to buy or start a 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.

Rowan's stock range is defined by its calculated support defined at $30.25 and by the resistance level at $32.19; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for Rowan Companies. However, as the stock pulls back towards $30.25 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $32.19 then traders will get an opportunity to enter the stock as it moves to a higher range.