The world-famous aeronautics engineering company Rolls-Royce (LSE: RR) share price rebound for the second consecutive day. The share price was up by more than 2% on Wednesday, the upside momentum supported after the company said that its electric planes and air taxis will be ready by 2025. While considering the recent rebound the share price is down more than 20% in the past 3 months.
Rolls-Royce reports its full-year results for 2021 on Thursday, February 24. Rolls-Royce Holdings is the second-largest airplane engine manufacturer globally, right behind GM. The company makes power systems that power ships and other marine products in its power business. The firm has a market capitalization of £10.19 billion and a price-to-earnings ratio of 4.30.
Rolls-Royce recently announced that its power systems unit is developing low-emission yacht engines powered by methanol amid a drive to diversify away from its core business of civil aviation. The company also expects to produce the first electric aircraft within 3-5 years. The small aircraft powered by P-Volt will have about 600-kilowatt hours of power and it will enable flying six to eight people as far as 80 nautical miles and the battery-electric system.
“We are confident in the technology. Now we need to scale it so it can have a meaningful economic influence, I think that’s where you see urban air mobility and regional air mobility, aircraft with 8-18 seats, becoming a real possibility in the next three to five years” - Rolls-Royce Electrical President Rob Watson said.
ROLLS-ROYCE (LSE: RR) TECHNICAL OUTLOOK
Technically the overall momentum remains mixed after last week's downside move. However, the stock attempting to regain ground once again pushing back above 120p with the next resistance level in sight at 124p. Therefore, there are chances the stock will likely keep rising in the short term if the company report strong results on Thursday.
On the upside, if the RR sustains above 124p and the momentum picks up there are chances the stock may eventually rise to near the 135p area and a clear break above 135p will open the doors to 150p. On the flip side, a break back below 106p might indicate a resumption of the long-term downtrend.
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