The Rolls-Royce share price has bounced back recently. The stock is trading at 111.90p, which is almost 30% above where it was on January 26. It has risen by more than 22% in February.
What happened: Rolls-Royce Holdings has been a company under pressure. The coronavirus pandemic has had a significant impact on the airline industry and analysts expect it to remain like that for a while.
Many airlines have canceled some of their previous orders from manufacturers like Boeing and Airbus. Similarly, with many planes not flying, RR lost its lucrative servicing order where it makes most of its money.
However, there is a light at the end of the tunnel. In the past few months, more airlines have restarted their schedules. And this will continue to happen as more countries continue to vaccinate their people. Already, more than 40 million Americans and 15 million British people have received a vaccine.
Still, it will take a long period for Rolls-Royce to go back to pre-pandemic levels. This means that it will likely raise capital again in the next few years, which could dilute investors further.
On the hourly chart, we see that the RR share price soared to 115p this week and then erased some of those gains when it dropped to 104.45p. This price was notable since it was along the 38.2% Fibonacci retracement level. It has already moved above the 25-day and 15-day weighted moving averages.
In my view, the shares will likely continue soaring in the near term as investors attempt to move above the YTD high of 115p. If bulls manage to move above this level, the next key point to watch in March is 121p, which was the highest level on December 29.
The next key date to watch will be March 13 when the firm will publish its full-year results.
