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Rolls-Royce share price: signs of a recovery?

Losses over the past few months have been significant, so independent analyst Alistair Strang has run his software again, looking for reasons to be positive.

28th October 2026 07:21

by Alistair Strang from Trends and Targets

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Despite having broken below the rising trend that had been in place since the start of 2025, Rolls-Royce Holdings (LSE:RR.) is now showing some early signs of a potential recovery.

For the bullish scenario to gain traction, we’d need to see the shares break above 1,282p. Such a move would satisfy our first technical condition and open the way towards an initial target of 1,341p. A subsequent break above that level would bring our secondary target of 1,413p into play.

Should this scenario be triggered, our tightest stop-loss level would sit at 1,161p.

Of course, we also have a less optimistic scenario in mind.

A fresh move below 1,158p would raise concerns about renewed weakness and the risk of a reversal. In that event, we’d look for an initial downside target of 1,112p, followed by a secondary target of 1,037p if the lower level is breached.

Our view

For now, we’re inclined to anticipate a recovery in the share price. One encouraging feature of the recent dip was that Rolls-Royce failed to close below 1,161p. That resilience leaves us wondering whether there’s more underlying strength here than the recent weakness might suggest.

A break above 1,282p would provide the first meaningful confirmation of that view. Until then, the prospect of a recovery remains just that; a prospect, rather than a confirmed move.

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Source: Trends and Targets. Past performance is not a guide to future performance.

Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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