Connect with us

Hi, what are you looking for?


UBS agrees, Rolls-Royce share price could hit 200p – technical analysis

Rolls-Royce Holdings (LON: RR) share price has moved sideways in the past few weeks as the recent rally takes a breather. RR has been one of the best-performing FTSE 100 constituents this year after jumping by more than 140% from the lowest level in October last year. In this article, we will look at what technicals are saying about the shares.

Rolls-Royce share price analysis

On the daily chart, we see that the RR stock price has been in a strong bullish trend in the past few months. As a result, the company has moved above the 25-day and 50-day exponential moving averages (EMA). In trend-following, this is usually a bullish sign since it shows that bulls are in control.

At the same time, the shares have formed a cup and handle pattern, which is also a bullish sign. The recent consolidation is part of the formation of the handle section. In price action analysis, this pattern is a positive sign. The stock is also above the Ichimoku cloud indicator. It is also slightly above the upper side of the cup at 150.35p. 

Therefore, there is a likelihood that the stock will have a bullish breakout in the coming months. If this happens, as I wrote here, there is a possibility that the shares will jump to 180p followed by 200p.

A likely catalyst for this bullish trend will be the rising flying hours, which have an impact on the company’s revenue. In a statement, analysts at UBS said that they expect that flying hours jumped by more than 2.8 million in the first quarter. They also expect that hours will rise to over 13 million this year. In their report, the analysts said that they expect the Rolls Royce share price to hit 200p this year.

Rolls Royce share price analysis

Turning to the weekly chart, the shares have been in a bullish trend. It has moved close to the 38.2% Fibonacci Retracement level. It has also jumped above the 25-week and 50-week moving averages. The shares have formed a bullish crossover pattern while the Relative Strength Index (RSI) have continued rising. 

The stock has also formed a cup and handle even on the weekly chart. Therefore, based on this pattern, the shares will likely rise to the 38.2% retracement point at 167p followed by 207.20, the 50% retracement point. The latter price is about 35% above the current level.

RR chart by TradingView

The post UBS agrees, Rolls-Royce share price could hit 200p – technical analysis appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Latest News

    Rep. Jennifer Wexton (D-Va.) announced on Tuesday that she has been diagnosed with Parkinson’s Disease. “If there’s one thing that Democrats and Republicans can...

    Latest News

    After Dianne Feinstein announced she’d contracted the shingles in early March, her staff said she planned to return to the Senate within a matter...


    A U.S. District Court judge has ruled that Elizabeth Holmes, founder and CEO of the disgraced blood-testing company Theranos, cannot remain free on bail...

    Latest News

    SEOUL, South Korea — When a group of American lawmakers arrived in South Korea for meetings with government and military officials, President Yoon Suk-yeol...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2022 All Rights Reserved.