The Rolls Royce share price took a huge plunge this Wednesday as the correction in the stock continued. Companies involved in the aviation sector have suffered huge losses this week, as the impact of the rising coronavirus-delta cases on international travel weighs on investors’ sentiment.
The company had earlier announced a collaboration with UK jet developer AERALIS to provide Rolls Royce’s new propulsion systems for its pre-production aircraft. However, investors appear not to be too enamoured with the collaboration and are actively selling due to the soured sentiment around aviation businesses at the time.
Rolls Royce share price is down more than 3.68% as of writing.
Rolls Royce Share Price Prediction
The immediate support lies at 103.64 support. This level also coincides with the 50% Fibonacci retracement from the 19 July to 25 August price swing. If the decline continues, 99.90 comes into the picture. The 30 June/26 July low at 99.90 and the 90.52 support level are additional targets to the south that only become relevant if there is a deeper correction.
On the flip side, bulls would need to push prices above the 25 August high at 120.58 to restore the uptrend. This move needs to take out resistance barriers at 110.04, 113.70 and 118.26 to become a reality. This move would bring the 2021 high of 128.64 into the picture as a potential upside target.