Approaching Support: Rowan Companies

Published on Wednesday, 27 June 2012 08:56 Written by TradersHuddle Wire

New York, June 27th (TradersHuddle.com) - Shares of Rowan Companies, Inc. (NYSE:RDC) are trading very close to calculated support at $28.62 with price action closing at just $29.44 and placing the stock near levels where traders will start paying attention.

Rowan's stock range is defined by its calculated support defined at $28.62 and by the resistance level at $32.32, which should be used by traders planning their trades. These support and resistance levels are based on a peaks and troughs algorithm of the stock's price action.

Traders wanting to establish a position should pay close attention to Rowan's price action, and establish it as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $32.32 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the 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.