- Summary:
- Rolls Royce share price could be on its way back to positive territory as the company makes moves to offload is production units and develop greener engine.
Rolls Royce share price could have a good reason to find its way back up if the news on the day for the maker of plane engines hits a good note with investors. The company says it is now building a greener UltraFan new generation engine, with the first demo engine due for tests at the end of the year.
The company could also benefit from the recent lease agreement between AerCap Holdings and Norse Atlantic Airways, which will see the lease of 9 aircraft powered by the Rolls Royce engines by the former. The company is also working to sell off its turbines and engine manufacturing unit in Spain, evaluated at $2billion.
Rolls Royce share price did not have an immediate response to the news, as it has ended the day 0.14% lower.
Technical Levels to Watch
The Rolls Royce share price picture on the daily chart shows that price action is sitting on the 103.65 support. If this support level gives way, then bears could have a clean ride to the south, with possible pitstops at 99.90 and 95.05. A further decline brings 84.95 into the picture, with the psychological support at 80.00 located not too far out.
On the other hand, if bulls can seize the initiative provided by some of the positive news on the day, then we could see a push towards the 110.00 psychological resistance in the first instance, followed by the 116.05 and 122.30 resistance levels. Only a break above the 140.55 resistance barrier sends Rolls Royce share price to pre-pandemic levels.
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