Rolls Royce share price has had an underwhelming start to the new week, but still has upside potential if the pattern on the daily chart is anything to go by. The company announced the completion of a $600million revamp of its facilities in Indianapolis and plans to undertake several similar upgrades across the state of Indiana in the United States.
This upgrade has reduced the carbon footprint of that facility by 50%, and took six years to complete. The company is also working on an upgrade to a facility at Purdue University that conducts research and development of hybrid-electric and high-altitude engines.
Rolls Royce has undertaken a massive diversification pathway after its aerospace business took a hammering after global aviation shut down in the wake of the COVID-19 pandemic in 2020. Rolls Royce share price opened with a downside gap but has covered most of this opening, trading 1.03% lower as of writing.
The daily chart features an evolving bullish pennant, with the active daily candle nestling the resistance at 110.04. A break of this level also takes the Rolls Royce share price above the consolidation area. This bullish pennant breakout targets 113.70, with 118.26 as the additional barrier that has to be taken out along the way as the price seeks a measured move towards 122.30.
On the flip side, a decline from the current resistance invalidates the pennant and allows for a potential pullback towards the 103.64 price resistance. Below this level, 99.90 and 95.04 serve as additional targets to the south.