Rolls Royce was back at the support levels near 210p as airlines gave the government an ultimatum for an alternative to quarantines in what they said was a “last chance” for the embattled airline sector.
An industry body representing British Airways (BA), EasyJet, Ryanair, Virgin Atlantic, TUI , Jet2 and others, wrote to the U.K. government to implement a new strategy that would avoid further lockdowns and the recent spate of quarantines that have hit airline travel once again. The group insisted a new strategy was needed by the end of September or the sector was at risk of not surviving.
The drop in airline activity has hit Rolls share price hard as the company gets paid for its engines by flight hours. If the U.K. government can ensure that no further lockdowns and quarantines will happen then the share price could get a much-needed boost.
The downturn in air travel saw Rolls Royce announce a record loss of -£5.4 billion for the first half of 2020, with the company also announcing asset sales. The company’s CEO resigned for a role at booming retailer Ocado, but has agreed to a transition period.
Rolls Royce Technical Outlook
Rolls Royce share price was testing the support level at 210p once more and if no catalyst is seen then there is potential to trade lower. Resistance is around the 250p level with a chance to move higher to the 50 day moving average at 250p. The Investing Cube team is available for Trading Coaching. The Premium Forex Trading Course is also available for those seeking to learn more about the FX market and risk management.
Rolls Royce Daily Chart