Rolls Royce (LON: RR) share price has been on a tear this week. The shares of the British jet engine manufacturer have surged more than 20% this week and seem to be unstoppable. Consequently, the stock is now trading at its highest level since March 2020.
The shares opened 15% higher on Wednesday as the firm upgraded its profit forecast for the year. The buying pressure took the stock even higher as the day progressed. As a result, Rolls Royce shares closed the day 21.19% higher. The positive price action continues on Thursday, and the shares are up 1.23% till press time.
Thanks to the ongoing rally, Rolls Royce’s market capitalization has surged to 15.89 billion pounds. A 20% move in such a major stock is not a joke. The move suggests that a lot of new capital has been injected in the stock of the aviation giant.
The soaring Rolls Royce share price can be attributed to the recent upgrade in the full-year guidance for operating profit. The firm updated its forecast from the previous £800M-£1B to £1.2B-£1.4B. Following the upgrade, the buyers stepped over each other to buy the stock.
I have repeatedly mentioned the 161p level in my previous LON: RR analysis. The shares have finally broken above this level with a massive gap-up move. This also signals some great strength above the 200 MA on the weekly chart. This positive move ahead of next week’s earnings release is very significant.
If the firm’s upcoming earnings beat the estimates, Rolls Royce share price forecast will flip very bullish for the rest of the year. The shares still need to flip the 174p resistance into support. This will further validate the recent bullish push, which has taken the stock to its fresh 3-year highs.
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 %s = human-readable time difference 11:58