Rolls Royce share price extends its recovery for the second day in a row. The shares of the jet engine manufacturer touched its new 2-month low on Monday before having a 4% rebound. At the time of writing, LON: RR is priced at 213p and is up 0.4% from Tuesday’s close.
The FTSE 100 index surged to a new monthly high on Wednesday after the Bank of England expressed confidence in the UK’s economy. The British central bank also expressed its confidence in UK banks’ ability to withstand any economic crisis.
Rolls Royce, along with 5 other companies, has passed the initial test for Britain’s small modular nuclear reactors (SMRs) project. The UK aims to produce around 24 gigawatts by 2050 through nuclear power, and small modular reactors (SMRs) offer a quick and cost-effective way to achieve this goal. The government will likely announce the selected company by the spring of 2024.
Another good news for Rolls Royce investors is that Fitch Rating has taken notice of the improved credit metrics of Rolls Royce. The rating agency has improved the aviation giant’s rating to BB from BB-, with a positive outlook for the British jet engine manufacturer.
Rolls Royce share price is showing a strong recovery after a 12% correction in the past few days. The shares are currently retesting the 213p level, which may now act as a potential resistance level after previously acting as a support level.
The weekly bullish market structure remains intact despite the price making a lower low in the daily timeframe. Due to this reason, Rolls Royce share price forecast is still bullish. If the broader market sentiment remains positive, there is still a chance of a retest of 250p level.
However, a breakdown below 200p will negate the bullish outlook. In this case, a retest of the 200 MA will be on the cards.
This post was last modified on Oct 11, 2023, 21:05 BST 21:05