Is there even more to come from Rolls-Royce shares?
27th July 2023 07:36
by Alistair Strang from Trends and Targets
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FTSE 100 shares rarely do this well in a single trading session, but Rolls stunned the market with its latest update. Independent analyst Alistair Strang thinks this opens up 'fascinating potentials' for the longer term.
It’s not often a FTSE 100 component makes a 21% upward shuffle but Rolls-Royce Holdings (LSE:RR.) finally enacted something we’ve been waiting for since March of this year.
The market was certainly impressed with the news from Rolls, opting to gap the share price up from 152p on Tuesday to an opening price of 175p on Wednesday, a lift of 15% before any trading actually took place.
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We’d been waiting for a visit to the 190p level and were amazed all the heavy lifting was enacted in one day. Given our target level was slightly exceeded, some quite fascinating potentials are opening up for the longer term, the first of which is a suggestion movement now above 192p should make an attempt at 232p next with secondary, if bettered, at 244p.
Given the proximity of these target levels, we rather suspect some hesitation will be on the cards, especially as they match the pre-Covid 19 highs of 2020, a price level which many shares tend to stumble at.
At this point, we can switch to our Bigger Picture calculation tier as it demands share price closure above 232p to once again trigger the potentials of extraordinary long-term movement for Rolls Royce, giving an ambition at a distant 307p with secondary, if bettered, a truly amazing 397p. However, a lot will depend on what actually happens around the 232p level, as we do suspect any market hesitation at such a level will impact on longer term hopes and dreams.
For everything to now go wrong for Rolls, their share price needs to wither below 133p, risking a visit to 100p initially with secondary, if broken, at 66p.
For now, we suspect everything has changed for the better, at least until 232p makes an appearance.
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.
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