The Rolls Royce share price is falling steeply for the 3rd day in a row on a day when risk aversion has taken hold of the markets. The decline comes as investors share concerns about the impact of rising inflation on luxury vehicle sales. The consumer inflation data from the UK showed that there had been a significant hike in the prices of automobiles.
Also adding to the bearish sentiment is the news that Chairman Anita Frew is actively searching for successors to the erstwhile CEO of Rolls Royce, Warren East. East has been CEO since 2015, but he is to leave this year as the company aims to take a new post-COVID direction.
Part of this change is to redirect the company from a business model that relies on revenues from the engines it supplies to large aircraft. The grounding of aviation globally exposed the underbelly of this model and generated massive losses for the company.
Rolls Royce is now shifting towards the defence industry as it scales away from civil aviation. It is thought that a new CEO with international connections could deliver this new mandate.
As of writing, the Rolls Royce share price is down 4.97%, marking a 7th straight day of losses.
Rolls Royce Share Price
The bearish intraday candle is on course to contact the 112.90 support level. If the bears crush this support level, 106.92 becomes the next barrier to the south, followed by 100.06 (20 September 2021).
On the flip side, a bounce on the 112.90 support allows the bulls to aim for the 117.06 resistance. Above this level, 123.64 and 131.16 serve as the immediate resistance targets in the short term.