Rolls Royce (LON: RR) share price is consolidating after hitting a new 3-yearly high of 222.3p. The shares of the British aviation giant have rallied a staggering 240% from last year’s lows. On Monday, the stock was up 0.87%, trading at 219.8p till press time.
The UK stock market experienced some bullish sentiment today. The FTSE 100 index has been on a roll lately as the index rose by 240 points from its August low. The index now stands at 7485 points, up 0.68% from its previous close.
In July, Rolls Royce announced an expected operating profit of £1.2 billion – £1.4 billion and free cash flow between £900 million – £1 billion. However, the investment bank UBS predicted a £2 billion free cash flow in 2024. The newly appointed CEO for Rolls Royce is also expected to present some medium-term goals for the business at the end of November.
In other news, Bank of America also jumped on the bandwagon by increasing their Rolls Royce share price target from 190p to 260p. The bank listed the extremely bullish earnings report and the increased chances for better dividends for 2024 as the reason for the upgrade. The recent upgrade by the banks is another bullish sign for the stock of the jet engine manufacturer.
The price chart for LON: RR continues to trade above the 0.5 Fib retracement level that I mentioned in my previous forecast. The chart shows no signs of a potential reversal yet, but that does not mean the bears are gone. There is a bearish divergence developing on the daily chart, which must be concerning for the bulls.
The Rolls Royce share price forecast will is looking quite bullish as the shares head towards my bullish target of 0.618 fib level, which is 249p. However, if the price breaks below the 0.5 Fib level, a 15% correction toward the 174p support level could be on the cards.
In the meantime, I’ll keep sharing updated Rolls-Royce stock forecasts and my personal trades on my Twitter, where you are welcome to follow me.
This post was last modified on %s = human-readable time difference 15:37