Rolls-Royce: Are shares starting to pick up again?

After a few weeks off, Rolls-Royce shares appear to be gaining momentum again. The British engine and defense company was the top performer in the FTSE 100 last year, with its share price up more than 200 percent.

In mid-December, the stock price entered a consolidation movement. Only considering the long-term downward trend since the beginning of 2014. Since then, the price has not shown any significant changes.

Linked in time

Although the stock lacked momentum, there was also no significant selling pressure. Therefore, the stabilization was done not on the price, but after time. Now it looks as if the stock may be on the verge of a new wave high.

The price bucked the bearish trend and rose 2.2 percent on Tuesday on the domestic stock market in London. The daily maximum is 312.9 GBX. If the bounce above mid-December at 313.30 GBX is successful, the stock will generate a technical buy signal.

A rise to GBX 341.30/344.40 would then be possible. Additionally, the next restrictions are 379 GBX and 400 GBX. The record high from early 2014 at 444.10 GBX would be considered.

Rolls Royce Stock Chart

What’s next for Rolls-Royce shares?

But there are also warning sounds from chart technology. Although the relative strength index has been revised daily, the weekly and monthly RSI continue to show overbought conditions.

Analysts see the stock’s fair value at GBX 352.40, 13.5 percent above the current price level.