Rowan Companies (RDC.US) - Good BUY opportunity

Rowan Companies RDC.US - Our expectations: The price reversed its move after 9-month in a downward trend and reaching a low of $ 9 on August 18th. On September 7, the company made a reversal, rising close to its trendline. At this point, the price was $ 10.90, with the 200-day moving average standing at 14.65. A week later, the RDC broke its diagonal resistance, and yesterday closed at levels around 11.04. It seems the upward movement will continue as the price is headed to a June-September resistance test between $ 12.0-11.95. A break of these levels will boost the bullish expectations as the next point to be tested on the way up will be the dropping 200-period, which is already at 14.50, which also coincides with the 161.8 on the reverse fibo. In order to position ourselves correctly with a lower stop loss and risk, we expect a correction of 10.70.

The company is moving along with ETF SPDR S & P Oil & Gas Equipment & Services, which is another positive factor

Here's how the biggest ETF is doing, following companies in the oil sector:

Compared to the average of 30 days, the search for information about this company is at the highest levels. Trading of company options has risen more than 4 times over the last 20 days. 3-month volatility has risen to 50.9%.

Shares rose 5.7% in the previous session, while the S & P 500, which includes the company registered a 0.3% growth.

The company and the index moved together, but the fall of the oil recently affected the stock decline, while the S & P 500 kept its levels. The fact that the company lags behind the index means that there is a good way to catch up and raise.

Alternative scenario: If the price goes back below the last resistance, current support, we can look for new short positions after a successful break test.

Jr Trader Alexander Kumanov

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