- Summary:
- The search to replace the outgoing Chairman and the CFO of Rolls Royce is on; the stock manages to gain slightly, clawing back some of Friday's losses.
Rolls Royce Chair Ian Davis will step down in March 2022, according to a Sky News report. The report also indicates that Rolls Royce would be appointing a replacement for Davis in 2021 to ensure a smooth transition. This transition will also see the company replacing the outgoing Chief Financial Officer Stephen Daintith, who is leaving for Ocado.
These changes come at a critical juncture in the airplane engine maker’s affairs. Rolls Royce has taken the full force of the coronavirus’s economic impact on the aviation industry, as it earns its revenue from a unique compensation structure that sees payments for its plane engines tied to the number of hours flown. A 95% reduction in international air traffic due to lockdowns has severely impacted its financial situation.
Rolls Royce is up 4.44% on the day after Friday’s 7.87% slide. A rollout of coronavirus vaccines in the US and UK have led to a surge in travel stocks worldwide this Monday.
Technical Levels to Watch
Today’s upside push has met resistance at 122.30 (7 April, 8 June and 25 November highs). A break of this price level is needed to extend the gains on Rolls Royce towards the 134.30 resistance target (3 December high). Above this level, 140.55 could serve as an additional target to the north.
On the flip side, the ascending trendline support and the 116.05 support line form the only barriers that prevent Rolls Royce from a huge downside move that would most likely target 103.65. 99.90 and 84.95 constitute additional downside barriers, with 80.00 also lining up as a potential target if the price drops below 84.95.
Rolls Royce Daily Chart
