Connect with us

Hi, what are you looking for?


Rolls-Royce share price is cruising: is it a good buy now?

Rolls-Royce (LON: RR) share price has staged a strong comeback in the past few months. The stock surged to a high of 90p, which was the highest level since August 3rd of this year. It has recovered by about 40% from its lowest level in October.

Rolls Royce strong demand

Rolls-Royce’s business is seeing a strong demand as its key sectors do well. Its civil aviation segment is performing well as the aviation business rebounds. Most airlines like IAG, United Airlines, and Delta have all seen vibrant demand in the past few months.

Rolls-Royce is also seeing strong demand in its defence business as countries boost their military capabilities. Countries like the United States, UK, and Germany have all pledged to boost the amount of money they spend in the sector. Rolls-Royce, a leading player in the industry, is expected to benefit. It serves over 400 airlines globally.

The same is true for its Power Systems segment, where the number of order intake continue bouncing back. Some of its order intake included an order of over 500 mtu engines for the UK military. 

Last week, the company published a mixed trading statement. The firm said that its large engine flying hours continued their recovery. They are now about 65% of 2019 levels, with strong recovery in the United States and Europe. The Chinese and Asian business has held back this growth.

The private jet industry has boomed above 2019 levels. Notably, the company will likely benefit by the regulatory clearance of Boeing 787 aircraft and the recent decision by China to reduce its quarantine days. Therefore, there is a high likelihood that the Chinese business will continue doing well in the near term.

Therefore, there is  high likelihood that the company’s business will continue doing well. Another catalyst will be the weak British pound and the fact that the stock is undervalued as I wrote in this article.

Rolls-Royce share price forecast

Is it safe to buy Rolls-Royce shares? The 4H chart shows that the RR share price has been in a strong bullish trend in the past few days. In this period, the stock has managed to move above the 78.6% Fibonacci Retracement level. The stock also moved above the important resistance level at 81.15p, the highest point on September 12.

The shares have moved above all moving averages while the Stochastic Oscillator has moved above the overbought level. Therefore, the shares will likely continue rising as buyers target the key resistance at 95p. A drop below the support at 87p will invalidate the bullish view.

The post Rolls-Royce share price is cruising: is it a good buy now? appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like


    Inflation appears to be on the decline. The Personal Consumption Expenditures Price Index (PCEPI), which is the Federal Reserve’s preferred measure of inflation, grew...


    Solana (SOL/USD) is enormously underrated as a cryptocurrency project, even with its hiccups – including the latest exploit on one of the ecosystem apps....

    Editor's Pick

    The new eSIM infrastructure will help modernise the IoT connectivity market with fast, secure connections and reduced vendor lock-in. 1oT, a tech startup from...


    The latest Job Openings and Labor Turnover Survey from the Bureau of Labor Statistics shows the total number of job openings in the economy...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2023