Rolls-Royce Share Price July Forecast: A Rebound Seems Likely

Summary:

In this Rolls-Royce share price article, we look at what to expect as the stock declined sharply in June and why a rebound is likely

The Rolls-Royce share price struggled in June as the number of coronavirus cases continued to rise and as countries added more restrictions. The stock declined by more than 16% from the monthly high of 113p to a low of 94.65p. It is now trading at 98p, which is about 4.30% above the lowest level in June. So, what next in July?

RR stock July forecast. The Rolls-Royce share price will react to the overall trend of the Delta variant and the measures that governments will implement in July. Recently, governments like those in Spain and Portugal have announced measures to limit travel, especially from the UK.

Regardless, there are signs that the aviation sector is rebounding. For example, this week, United Airlines announced the biggest aeroplane order from Boeing and Airbus. These planes, however, will come with engines from General Electric because of their narrow body.

Still, the fact that United ordered these planes is a sign of confidence that the industry is expected to rebound. Another sign is that many airlines like British Airways and Qantas have talked about their rising demand. Further, there is a possibility that more countries will continue to reopen in July. In a recent statement, Sajid Javid said that he was committed to reopen the country fully in July. All these are important since Rolls-Royce makes most of its money from the civil aviation business.

Rolls-Royce share price analysis

The 30-minute chart below shows the overall performance of the RR share price in June. We see that the stock made a deeper dive when it crossed the support at 103.95p on June 28. It has attempted to rebound in the past few sessions. Along the way, it has moved above the 25-period and 15-period exponential moving averages (EMA). Also, it has formed an inverse head and shoulders pattern, which is usually a bullish signal.

Therefore, the stock will likely push higher in July, with the next reference point being at 104p, which is about 4% above this level. On the flip side, a drop below June’s low at 94p will be a sign that bears have prevailed.