Rolls Royce: The segment pays tribute to the great rally!

Defense and aerospace stocks are among the top performers on the stock market this year. This also applies to the engine manufacturer Rolls-Royce, which shines with a share price increase of more than 200 percent, making it the best value in the leading British index FTSE 100.

However, there was little profit-taking this week: shares paid tribute to the previous strong run and are down nearly 7 percent since mid-week. For a week, the so-called shooting star is created. This is a candlestick pattern with a long upper shadow and a small body.

The meeting is coming to an end

To be precise, you are even dealing with a Gravestone Doji, as the opening, low and closing prices are almost at the same height. Both candles indicate that the buyers were able to push the price to a new high, but were unable to defend this level. So there is a risk that the upward trend will reach its limit.

Rolls Royce Stock Chart

What’s next for Rolls Royce shares?

However, I wouldn’t go so far as to say that the high is over. However, investors should expect that the correction will continue in the coming week. After breaking below the GBX 300 level, further stops are located at 266.60 and 256.3 GBX. There is also strong support around the GBX 225 level.