The Rolls-Royce Holdings share price had an ugly month in March. After soaring to a multi-month high of 128p in mid-March, the stock declined by more than 23% and reached a low of 99.05p on March 24. Since then, the company has been crawling back as investors rush to buy the dips.
What happened: Rolls-Royce Holdings has been a key Covid-attached stock. The shares declined to a historic low in 2020 as the virus brought the airline industry to a halt. In the past few months, however, the stock has rebounded as investors price-in a major recovery of the investors price-in a swift recovery of the industry.
This changed in March as more countries, especially those in Europe, announced more measures to slow the spread. This is the main reason why the Rolls-Royce share price declined sharply during the month.
In April, the stock will react to the progress on vaccination. Analysts expect that the industry will continue recovering during the month as more countries ramp-up vaccination. The shares will also react to the annual report that will be published tomorrow.
Turning to the 30-minute chart, we see that the RR share price is trading at 109p. This price is a few points below the important resistance at 110p, where it has struggled to move above in the past few sessions. The price remains above the short and longer-term moving averages. It is also along the 61.8% Fibonacci retracement level.
Therefore, in April, I suspect that the upward trend will continue as investors target the 38.2% retracement level at 117p, which is along the 38.2% retracement level. On the flip side, a move below 104p will invalidate this trend.
