Company Description: Southwestern Energy Company engages in the exploration, development, and production of natural gas and crude oil in the United States. The company operates in two segments, Exploration and Production, and Midstream Services. The Exploration and Production segment involves in the development of the unconventional gas reservoir located on the Arkansas side of the Arkoma Basin, as well as exploration and production activities in Oklahoma, Texas, and Pennsylvania. This segment also engages in conventional drilling programs in the Arkansas part of the Arkoma Basin; and conducts development drilling and exploration programs in the Oklahoma portion of the Arkoma Basin, Texas and Pennsylvania, as well as operates drilling rigs in the Fayetteville Shale play and in East Texas. The Midstream Services segment engages in the marketing of its own gas production, as well as third party natural gas; and transportation of natural gas. As of December 31, 2008, the company’s estimated proved natural gas and oil reserves were approximately 2,185 billion cubic feet of gas equivalent. Southwestern Energy Company was founded in 1929 and is based in Houston, Texas.

Our Analysis: The shares of Southwestern Energy Co. 'SWN' gapped lower on the open of trading yesterday. They finished the day sharply lower and closing below a recently established support level on heavier than normal trading volume. This is a bearish trading signal. The shares of 'SWN' should continue to move lower and test $40.28/share, a point of downside support established on October 1st of this year. If the shares of 'SWN' close below that level then they should continue to move lower and test $37.21/share, the point from which they gapped higher on the open of trading on September 8th of this year. I see upside resistance on the shares of 'SWN' @ $41.49/share, and have set my stops accordingly @ $41.93/share.