Rolls-Royce share price pulled back on Thursday after the company published an encouraging trading statement that illustrated strong results. RR stock was trading at 1,140p, down from the year-to-date high of 1,193p. So, will the stock resume the uptrend after the results?
Rolls-Royce Holdings business is doing well
The Rolls-Royce stock price is hovering near its all-time high as its business continued its recovery amid strong demand for its products and services.
In a statement, the management said that its performance was in line with its expectations, meaning that it will make between £3.1 billion and £3.2 billion in underlying profit this year.
The company is seeing strong demand for its engines, including from companies in the South Asian region, including companies like IndiGo, Malaysia Airlines, and Avolon. It is also seeing some demand for the A350F, especially from Chinese clients.
Global airlines are doing well this year, with their revenue and load factors increasing despite the substantial risks, including the recent government shutdown in the United States and Donald Trump’s tariffs.
At the same time, the company’s engine prices have risen a bit because of the ongoing supply chain challenges and a global shortage of engines. Also, newer engine maintenance is taking longer because of the growing backlog.
Rolls-Royce has also become an indirect beneficiary of the ongoing artificial intelligence industry because of its power businesses, which makes engines used by utilities and other companies. It is also working on the next-generation engine that will be specifically aimed at the date center industry.
Rolls-Royce’s defense business is also thriving as geopolitical tensions remain. It cited a recent deal between Turkey and the UK that will see the former buy 20 Eurofighter Typhoon aircraft that will use Rolls-Royce’ s engines. The CEO said:
“Strong performance across the Group, driven by our actions and strategic initiatives, was in line with our expectations. This builds further confidence in our Full Year 2025 guidance of underlying operating profit of between £3.1bn and £3.2bn despite continued supply chain challenges.”
These results mirrored those of GE Aerospace , it competitor that also published strong financial results.
Rolls-Royce share price technical analysis
The daily timeframe chart shows that the RR stock price has been in a strong uptrend this year, eventually reaching an all-time high of 1,193p.
It has remained above the 50-day and 200-day Exponential Moving Averages (EMA), a sign that bulls are in control.
The risk, however, is that the stock has formed a double-top pattern, which is made up of two peaks and a neckline, which, in this case, is at 1,087p. A double-top is one of the most bearish patterns in technical analysis.
The Bull/Bear Power indicator has moved below the zero line, a sign that bears have prevailed. Therefore, there is a risk that the stock may pull back in the near term. If this happens, the next key level to watch will be at 1,087p.
On the flip side, a move above the double-top point at 1,193p will invalidate the bearish outlook and point to more upside, potentially to the psychological level at 1,200p.
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