Rolls-Royce shares: That’s completely normal!

Shares in British engine maker Rolls-Royce fell further this week, continuing a downward trend that began at the beginning of April. A long red candle can be seen on the monthly chart, which led to a pullback of more than 7 percent.

It is quite normal for investors to take profits on the table after a full month rally and there is no reason to worry. After all, prices have increased by more than 60 percent since December. The ongoing correction is confirmed by movements in the RSI and MACD. The sell signs appeared there at the beginning of April.

The 50-day line is considered

If the price drops below the 400 dinar mark, the 50-day line (SMA50) will be highlighted. It is approaching the price from the bottom and is currently at 381.80 pence. In mid-February, the 50-day average, which is considered a signal for the medium-term trend, proved to be supportive and initiated a new upward movement.

If there is a break to the downside, a correction could extend to the 350p level and the February high of 346.90p. But the upside is still the same: If the price rises again and overcomes the high concentration of 435 dinars, the way to reach the high level of 444.10 dinars will be clear. On top of this the rally towards 500p can continue.

Rolls Royce Stock Chart

This is how analysts evaluate Rolls-Royce shares

The analysts’ average price target is currently 447.80 cents, and the market’s highest target price is 550 cents. Currently there are 10 Buy, 2 Overweight, 4 Hold and 1 Sell ratings.