Rolls-Royce (LON: RR) share price has maintained its uptrend amid ongoing banking issues. Global financial markets have been jolted by bank failures in the US. Even though the US government has stepped in to save the depositors, many analysts believe the worst is yet to come. Nevertheless, Rolls Royce shares are still trading 58% up from their YTD lows, and the chart is looking quite bullish.
Shares of major UK companies had a rough few days as Credit Suisse reached the verge of a major collapse. During this time, Rolls-Royce shares also had a 17% pullback. However, the investors were quick to buy the dip, and the price is now 13% up in the last 2 days.
On Tuesday, Rolls Royce stock opened higher, and the buying pressure kept increasing throughout the day. Till press time, LON: RR was trading at 149.78p after gaining 6.26% in the day. The positive price action of Rolls-Royce was also reflected in FTSE 100 index, which gained 128 points after a steep fall last week.
The reason behind the investor interest in the aviation and car company is its 2022 financial results. According to the recently released report, the company’s underlying profit crushed expectations by 36%. This was also an increase of 57% from the previous year.
Technical analysis of Rolls-Royce stock price chart clearly shows an uptrend that started back in October. Since the announcement of the 2022 profit numbers, the price has surged parabolically. This led to a major pullback that took the price from 160p to 132.26p. This also meant a failure to reclaim the 147p resistance, which had acted as a major pivot previously.
Nonetheless, the correction seems to be over now, as the price is trading above this key level once again. If the price closes a week above this level, then I expect it to rally toward 200p. However, this Rolls-Royce share price prediction is only likely to be met if the overall market outlook remains bullish. This is because the global banking crisis still remains a concern for many institutional investors.
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This post was last modified on %s = human-readable time difference 16:49