Rowan Companies near Key Resistance Area

Published on Wednesday, 08 September 2010 07:24 Written by TradersHuddle Staff

New York, September 8th (TradersHuddle.com) - Shares of Rowan Companies, Inc. (NYSE:RDC) are trading very close to calculated resistance at $28.69 with the current price action closing at just $28.19 placing the stock near levels that make it difficult to buy.

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 current stock range is defined by current calculated support defined at $24.36 and by the resistance level at $28.69, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Rowan Companies, as the stock is well above support, however, as the stock pulls back towards $24.36 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $28.69 then traders will get an opportunity to enter Rowan Companies stock by establishing a position as the stock moves to a higher range.