Rolls Royce (LON: RR) share price has been trading sideways for the past few days. Technical analysis shows that the shares are about to have a massive move in the coming days. This means that the moment of truth is here for the stock of the aviation giant.
The UK shares are showing a good recovery this week due to strength in FTSE 100 index. The benchmark index is up 2.63% this week after dropping below 7,300 support last week. Rolls Royce shares have remained unfazed by the market-wide rebound and were down 1.91% on Friday.
In the latest Rolls-Royce news, the investment giant JPMorgan has reiterated its sell rating for the shares of the jet-engine manufacturer. As per the details, JPMorgan has set a price target of 90p for the stock. This means that the investment bank has kept its outlook unchanged.
While the airline stocks have been performing well since last month, Rolls Royce share price has failed to experience a similar move. The shares are currently trading 8.7% below their yearly highs and are hanging by a thread after prolonged sideways price action.
A look at the following LON: RR chart depicts a prolonged sideways price action within the 145p-160p range. Despite breaking above the key resistance level of 145p, the shares have failed to gain momentum. Currently, the stock is retesting this level once again in its attempt to flip it into a support level.
A break below this critical level will make Rolls Royce price forecast very bearish for the coming months. This will also mean a breakdown below the upwards trendline, which is visible in the following chart. In this case, the first target for the bears could be the 118p price gap.
In the meantime, I’ll keep sharing updated Rolls Royce stock forecasts and my personal trades on my Twitter where you are welcome to follow me.
This post was last modified on Jul 14, 2023, 13:24 BST 13:24