Rolls Royce (LON: RR) share price is gaining strength above major resistance. The latest analysis suggests that the stock may be gearing up for a major upside move very soon. This puts another 17% upside for Rolls-Royce shares in the coming months.
On Friday, Rolls Royce share price rose by 0.36% in the opening hours. On a weekly timeframe, this translated into a 5.39% gain for the aviation giant. The UK stocks showed a mixed price action on the final trading session of the week as the benchmark FTSE 100 index showed minor gains.
According to the most recent Roll Royce news, analysts at Jefferies believe that the upper range of its guidance is well within reach. The analysts cited a recovery in flying hours and a boost from cost savings as major reasons for an increased cash flow. The mid-term cash flow of the British aviation giant currently stands at £2 billion.
Rolls Royce share price had a pullback as the BOE announced a 25 bps hike. Nevertheless, the stock rebounded after flipping the 146.8p resistance into support. We can also analyze its chart on a higher timeframe to remove the noise. According to Citi analysts, the shares have had a steady start to the year.
The following LON: RR chart shows that the shares have rebounded from a major resistance. The 146p-147p resulted in major corrections in the past. However, the price has now gained strength above it and appears to be heading for another retest of the 160p level.
A break above 160p will make Rolls Royce share price prediction very bullish. In such a scenario, the first target for the bulls will be the 170p-183p gap. A reclaim of this level may open the door for a bigger move till 200p.
I’ll keep sharing my updated outlook on Rolls Royce stock in my free Telegram group, which you’re welcome to join.
This post was last modified on %s = human-readable time difference 09:25