Rolls-Royce Share Price Forecast for 2022

The Rolls-Royce share price had a relatively good performance in 2021. The RR stock jumped by 40% between January and December 31st. It also rose by about 255% from the lowest level in October 2020. The stock is about 18% below the highest level in 2021.

Rolls Royce 2021 overview

2021 was a good year for Rolls-Royce Holdings. The company scored some major wins, including the giant order by the US military. The firm will supply B-52 engines, in an order valued at about $2.5 billion.

Rolls-Royce also boosted its energy business. In the fourth quarter, the company announced that it will build small nuclear reactors in the UK. It also partnered with the Qatari government to develop clean energy solutions.

Most importantly, the airline industry made strong gains in 2021 as more countries reopened. That was a major thing considering that Rolls-Royce Holdings makes most of its income from the aviation sector. The company also returned to profitability.

Looking ahead, 2022 will likely be a better year for the company. I expect that the number of flight hours seen this year will be bigger than those recorded in 2021. Still, the biggest challenge will be the ongoing foreign travel restrictions from some key countries like Australia and China.

Rolls-Royce share price forecast

The weekly chart shows that the Rolls-Royce stock price has moved sideways in the past few months. It has found resistance at 137p and support at 87p. The stock has also moved to the 25-week and 50-week exponential moving averages (EMA). It is also slightly above the 23.6% Fibonacci retracement level. 

Therefore, at this stage, the outlook for the stock is neutral with a bullish bias. A move above the key resistance level at 150p will be a bullish sign for the stock. It will mean that there are more bulls, who will be keen to push it to 200p. On the other hand, a drop below the support at 87p will signal that there are more bears in the market. 

Rolls-Royce share price