Rolls Royce (LON: RR) share price is rising once again after consolidating around a key support level. The jet engine manufacturer’s stock is having the third green day in a row. The latest analysis reveals that the stock is heading for another retest of the 160p resistance level in the coming days.
On Monday, Rolls Royce share price rose by 2% as the UK shares showed a mixed sentiment. On a weekly timeframe, this translated into a 3.4% gain for the aviation giant’s stock. The benchmark FTSE 100 index tumbled once again and was down 16.6 points till press time.
According to the most recent Roll Royce news, the company is eyeing a comeback to the single-aisle aircraft market. For the past few years, Rolls-Royce has remained focused on wide-body aircraft engines. However, according to a top executive, the firm is now considering returning to the single-aisle aircrafts.
In other news, analysts at Jefferies believe that the upper range of Rolls Royce’s guidance is well within the company’s reach. The analysts cited a recovery in flying hours and a boost from cost savings as major reasons for an increased cash flow. The mid-term cash flow of the British aviation giant currently stands at £2 billion. The strong financials will put a positive effect on Rolls Royce share price positively in the coming months.
The following LON: RR chart shows that the shares have rebounded from a major resistance. The 146p-147p resulted in major corrections in the past. After a retest of this region at the start of this week, the shares have bounced. The stock now appears to be heading for a retest of 160p resistance which has resulted in multiple rejections this year.
Rolls Royce share price will flip very bearish if it faces another rejection from the 160p resistance. Therefore, this will be a key retest to watch for the investors of the jet engine manufacturer. On the other hand, a reclaim of 160p will be very bullish for the aviation giant’s stock.
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This post was last modified on %s = human-readable time difference 17:53