New York, July 30th (TradersHuddle.com) - Shares of Rowan Companies, Inc. (NYSE:RDC) closed the trading session at $25.17 near its 50 day and 200 day moving averages currently set at $24.05 and $25.47 respectively. Rowan's price action is above the 50 day moving average but below its 200 day moving average, which provide a nice trading setup, with clear reference points.

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

A tiered approach to enter the stock, appears to be the best way to maximize possible movements from the stock, as traders could enter Rowan Companies with a small position and wait for the stock to break out above the 200 day moving average at $25.47, where traders could add to their position as momentum builds with the breakout. The flip side will be if support being referenced at the 50 day moving average set at $24.05 breaks it could mean further downside in the horizon for Rowan Companies.