Rolls Royce Share Price Forecast: Is a Jump to Multi-Month High at 95p Likely?

Rolls Royce share price has been on a strong bullish trend for the past few months amid a rise in demand. The RR stock has jumped more than 40% in the past two months. However, the shares are 28% below their highest level this year. The firm’s total market capitalization has climbed to £7.55 billion.

RR 2022 Performance

Rolls Royce share price has made a strong recovery in the past two months amid a rebound in international travel. Airlines such as EasyJet have reported a surge in demand in the past few months. This has boosted servicing revenues at Rolls Royce as planes fly for more hours each month.

In its last trading statement published on November 3, the company reported that it completed its £2 billion programme of disposals with the sale of ITP Aero. The sale enabled Rolls Royce to immediately repay its £2 billion UK Export Finance backed loan due in 2025.

In the report, the company said that large engine flying hours continued to make strong recoveries and were at 65% of 2019 levels in the four months to the end of October and 62% year to date. Strong recovery was reported in the US and Europe while lower travel in Asia and China was due to the ongoing Covid curbs.

In defence, Rolls Royce reported soaring demand from its customers with $1.8 billion in contract renewals. In Power Systems, RR reported elevated levels of demand in many of its end markets, driving an exceptionally strong order book and good revenue cover for 2023 and beyond. According to Chief Executive Officer, Warren East, the strong recovery gives them confidence in the future.

Rolls Royce Share Price Forecast

The daily chart shows that the Rolls Royce share price has been on a strong bull run in October and November. At the time of writing, the RR stock was trading at 90.25p and is still above the 25-day and 50-day moving averages. Its Relative Strength index (RSI) is neutral at 59.

The shares are likely to plunge in the near term before retracing in the long term. If this happens, traders will be eyeing the important support at 80.45p. However, a flip above the hurdle at 95.60p will invalidate this view.

RR Price Chart

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