Rolls Royce Share Price Opens Lower As FTSE 100 Index Extends Losses
Rolls Royce (LON: RR) share price has been unstoppable these last few weeks. The share price for the British jet engine manufacturer has seen an astronomical increase, soaring to its 3-year highs. This can be attributed to the earnings report published on 3rd August.
The FTSE 100 has been reporting losses since last week. The index opened the day with a massive red candle, trading at 7496 points, 2.65% below last week’s high. The Rolls Royce shares soared to new yearly highs thanks to the better-than-expected earnings report and the recent upgrade in the full-year guidance for operating profit.
Rolls Royce Delivers Stellar Earnings Report
On 3rd August, the British jet manufacturer published their half-yearly report. Rolls-Royce’s recovery in the first half of 2023 was spectacular, with pre-tax profit soaring from a loss of £111 million to £524 million. The company’s underlying profit came at £673 million.
Rolls Royce reported a more than double increase in the order for jet engines in the first half of 2023. Two hundred forty new orders were placed, including 68 Trent XWB-97 engines for Air India. In other news, JP Morgan upgraded the rating for the British jet engine manufacturer to neutral. They also increased the price target from £0.9 to £2.35.
Rolls Royce Share Price May Retrace From 208p
The chart for LON: RR shows that the price has broken above the 174p resistance level and is now retesting the 0.5 Fib level at 205p. Typically, the 0.5 Fib retracement level indicates a strong price reversal. If the bulls fail to gain strength above 205p, the price might return to 175p.
However, not all hope is lost for the bulls; if the price flips 175p into a critical weekly support level, the 0.618 fib level at 250p could be the next target. If the upside momentum is maintained, the bulls might target the next swing high of 380p.
In the meantime, I’ll keep sharing updated Rolls Royce stock forecasts and my personal trades on my Twitter, where you are welcome to follow me.