Rolls-Royce falls back towards trendline support
Rolls-Royce has rallied off its lows, but is the uptrend running out of momentum?
While Rolls-Royce is still firmly higher than in early May, the rally has run into some notable difficulties over the past few days.
The bounce took the price from the support zone around 250p to 400p, its highest level since late March. But history repeated itself – this area of resistance proved too strong in late March and also this week. The price then compounded the short-term negative view with a drop back below 360p, which had acted as a stumbling block in late April and in the second half of May.
Rolls-Royce: technical analysis
Now it is up to the bulls to ensure the price holds the 50-day SMA at 306.93p, and then stays above rising trendline support from the mid-May lows. A reversal below 300p provides a more negative outlook, targeting 275p and then 260p.
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