Rolls Royce share price is up today and looks set for a breakout on the daily chart. This price scenario comes as the aircraft engine maker said it had signed a memorandum of understanding with the state of Brandenburg in Germany to enhance the development of its hybrid-electric propulsion systems. The company has also opened an operational facility in Cottbus and will seek to expand its research and development capabilities in another city.
These moves come as Rolls Royce continues to expand its research and development into new product lines as a means of insulating the company from shocks such as the one that occurred from the pandemic. The Rolls Royce share price is also benefiting from the easing of COVID-19 flight restrictions across the world.
The Rolls Royce share price is up 0.67% on the day.
Rolls Royce Share Price Outlook
The evolving bullish pennant on the daily chart points to the potential for additional price advances. 9 March 2020 highs at 200.38 constitute a potential resistance beyond the measured move’s completion point at 182.56 (1 July 2010 and 5 December 2015 lows). This price mark must be attained before the 222.62 barrier (2 March 2029 high) comes into the picture.
This outlook is only invalidated if the pennant’s lower border gives way and the price achieves a 3% closing penetration below the 134.32 support. This move would open the pathway towards the 128.64 support, with 113.70 and 110.04 serving as additional targets to the south.