Rolls-Royce share price is up by more than 2.4% today becoming the fifth best-performing company in the FTSE 100. The other top performers are Next Plc, AVEVA, Shell, and DCC. It is trading at 105.70p, which is lower than December high of 135p.
What’s happening: There’s no news and analysts forecast about Rolls-Royce today. Therefore, the performance is mostly because of the overall optimism that the global aviation industry will rebound this year as countries implement coronavirus vaccinations.
Still, the situation is getting bad across the world as the number of cases continues to rise. In fact, in the United Kingdom, where Rolls-Royce is headquartered, the government has just announced another seven-week lockdown. In the United States, where the company sells most of its engines and services, the number of cases has also risen.
Rolls-Royce share price is also possibly rising because of the recent rumours from Airbus. According to Bloomberg, the company sold about 560 planes last year. That was close to the upper side of the internal target but it was less than the 863 planes that it delivered in 2019.
This report, if true, will be a positive thing for Rolls-Royce, a company that makes most of its money from its civil aviation business.
RR share price is also rising because of the latest Brexit deal. The deal meant that it will continue to supply its engines and other products to clients in the European Union without significant changes.
Read my 2021 forecast for Rolls Royce share price.
Rolls-Royce share price technical outlook
On the daily chart, we see that the Rolls Royce shares have been on a downward trend since December when it rose to 135.45p. This price was slightly below the June 20 high of 145.85. During this decline, the stock has moved below the 25-day moving average and is now along the 50 SMA. Therefore, a break below the 50-da SMA will mean that bears have prevailed, which will see the share price continue falling possibly to 90p.
RR technical chart