Rolls-Royce Share Price Could Pop After GE Stock Soars to 3-Year High

The Rolls-Royce share price jumped by more than 4% on Thursday after the company unveiled its large indoor engine testing bed in Derby. The RR closed at 107, which was 7% above the lowest level this week. 

What happened: Rolls-Royce showed off the results of its 90 million pounds investment in Derby on Thursday The company showcased a testing facility that it will use to test its engines. The facility is bigger than a football field and is big enough to hold its newest Ultrafan engine. In a statement, the company’s CEO said:

“This incredible piece of infrastructure is a very visible sign of our commitment to this site and secures the future of Derby as the home of large engine development.”

The testing center is a sign that the company believes that its business will rebound as the aviation sector stages a recovery. This is important since GE makes most of its money from its civil aviation business. The segment is complemented by the company’s power and defense business.

The Roll-Royce share price rose on a day that the GE stock price soared to a three year. GE is the company’s biggest competitor. The shares jumped after Airbus announced that it was gearing up for a strong post-pandemic aviation sector. The firm is expected to raise the production capacity of its A320 family of aircraft from the current 40 jets per month to 45 per month later this year.

Rolls-Royce share price forecast

The overall outlook for the Rolls-Royce share price has not changed from what I wrote earlier this week. The four-hour chart shows that the RR share price has been in the consolidation phase slightly below the 23.6% Fibonacci retracement level. It has formed a narrow channel that is shown in purple. It has also moved slightly above thec 25-day and 50-day weighted moving averages (WMA). 

Therefore, in the near term, I suspect that the stock will jump as investors target the next key resistance at 115p, which is about 15% above the current level. However, a drop below 100p will invalidate this target.

Don’t miss a beat! Follow us on Telegram and Twitter.

RR share price chart

Rolls-Royce share price

Follow Crispus on Twitter.

Compare accounts

Related Posts:

More in Shares: