Rolls Royce (LON: RR) share price has been consolidating above a major resistance for the past couple of months. This consolidation may result in a major move in the coming weeks after a prolonged sideways price action.
On Friday, Rolls Royce share price rose by 0.15% as the UK shares showed a mixed sentiment. On a weekly timeframe, this translated into a 4.47% loss for the aviation giant. The benchmark FTSE 100 index also remained sideways during the last trading session of the week.
Rolls-Royce Abandons Direct Air Capture Project
According to the most recent Roll Royce news, the company has dismantled the team working on its Direct Air Capture (DAC) project. As per Sky News, the CEO is going to restructure the company’s carbon capture operations.
In other news, analysts at Jefferies believe that the upper range of Rolls Royce’s guidance is well within the company’s reach. The analysts cited a recovery in flying hours and a boost from cost savings as major reasons for an increased cash flow. The mid-term cash flow of the British aviation giant currently stands at £2 billion. The strong financials will put a positive effect on Rolls Royce share price positively in the coming months.
Rolls Royce Share Price Rebounds
The following LON: RR chart shows that the shares have rebounded from a major resistance. The 146p-147p resulted in major corrections in the past. After a retest of this region at the start of this week, the shares have bounced.
Rolls Royce share price will flip bearish if its breaks below the 146p level. This mat triggers a sharp sell-off in the stock of jet engine manufacturers. On the other hand, a strong bounce from this level may send the shares to retest their range high at 160p.
I’ll keep sharing my updated outlook on Rolls Royce stock in my free Telegram group, which you’re welcome to join.
