The Rolls Royce share price is up 0.95%, just a few minutes into Thursday’s London Stock Exchange trading session. This advance puts the Rolls Royce share price on course for a third straight day of gains. However, the stock is capped at a key resistance, which has limited any significant recovery from 2022’s low recorded on 1 September at 69.57.
The slight recovery in the Rolls Royce share price comes as the company received an order for 9 mtu hybrid propulsion packs for 9 new fast crafts. Spanish shipyard Armon placed the order for nine new vessels on behalf of high-speed marine transport company Liberty Lines.
The mtu hybrid propulsion systems are designed for high speeds on the sea and quiet, emission-free port entry. The vessels carrying the mtu propulsion engines with a hybrid automation system will enter service between 2023 and 2026.
This is one of several collaborative projects in which Rolls Royce participates. The company is also partnering with Italian yacht builder Sanlorenzo to develop a yacht with a methanol-fueled engine propulsion system. A new support centre for the production of jet engines is also due for construction in France.
A rejection of the advance move at 78.20 leads to a continuation of the downtrend, targeting 73.23 (3 August 2020 low) as the initial downside target. The 11 September 2020/1 September 2022 lows converge at the 70.00 psychological price barrier.
The bears have to break below this price point to aim for 67.65, the 6 November 2020 low site. Further price deterioration leads to a drop that targets 60.16 (14 October 2020 low). If the bulls fail to defend this support at the 15 October 2020 low, the 53.49 pivot (22 September 2020 low) comes into the mix as an additional target to the north.
This outlook is negated if the bulls force a break of the 78.20 price resistance (10 May and 30 August 2022 lows). This break would lead toward the 82.21 price barrier, formed by the 5 August low and 25 August high. Above this level, the 29 June 2022 and 17 August 2022 highs form a barrier at 86.40.
This barrier must be uncapped before the 90.98 resistance (10 June and 1 August highs) becomes available as another upside target. The 14 March/21 April highs at 97.26 and the 100.05 psychological barrier form additional northbound targets if the advance continues.
This post was last modified on Sep 08, 2022, 11:33 BST 11:33