The 200 Day Moving Average is a Great Reference Point for Rowan Companies

Published on Friday, 13 July 2012 06:52 Written by TradersHuddle Wire

New York, July 13th (TradersHuddle.com) -Rowan Companies, Inc. (NYSE:RDC) closed the trading session at $33.86 near its 200 day moving average set at $33.24. Rowan's price action is just above this key support level, grabbing traders' attention for a possible trading opportunity.

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, places calculated support at $32.28 and resistance at $34.17. These levels will provide insight for the stock's latest price dynamics.

Traders wanting to establish a position on Rowan Companies will look for evidence of buying near the 200 day moving average, before opening the position as close as possible to this key technical level. Also, they need to consider the latest range defined by the calculated support and resistance levels for insights on other key levels that might have an effect on future price movements.