Rolls Royce Share Price Forecast: Is £3.50 Still On The Cards?

Summary:
• Rolls Royce Share Price Forecast remains bullish but LON: RR has hit a diagonal resistance which needs to be broken in order to target 352p.

Rolls Royce share price has emerged as the top performer among the blue-chip UK shares. The shares of the aviation giant are up 225% this year, and the bulls are still in control. Nevertheless, LON: RR has hit a major diagonal resistance, which may result in a short-term pullback.

Rolls Royce shares faced increased selling pressure last week as the price got rejected from the weekly highs of £3.13. As a result, the stock closed the week at £3.024 which was still 0.28% higher than the previous close.

This year’s surge in the stock of Rolls-Royce Holdings can be attributed to the strong earnings, increasing number of orders, and bullish guidance. The traveling industry has shown a strong rebound this year after facing demand destruction during lockdown.

In a recent statement, Rolls Royce CEO said that the market share of the company could improve along with the improvement in profit in the coming years. Since the joining of current CEO Tufan Erginbilgic, LON: RR has generated more than 200% returns and the outlook remains bullish.

The recent improvement in the market sentiment in the UK has resulted in the FTSE 100 index rising above 7,700 points. This has boosted investor confidence and solidified the uptrend in the Rolls Royce share price.

However, if you look at the following chart, you can see that the price is facing resistance from the diagonal trendline, which connects the previous peaks to the current price. If the bulls overcome this diagonal resistance in the coming weeks, I expect a move toward £3.52 which is the 0.786 fib retracement level.