Rolls-Royce downgraded, the trend remains bearish
Nicolas Suiffet June 1, 2020 9:04 AM
Rolls-Royce, the specialist in aircraft engines, has had its credit rating downgraded by S&P Global Ratings to "BB", the speculative grade, from "BBB-" previously
Rolls-Royce, the specialist in aircraft engines, has had its credit rating downgraded by S&P Global Ratings to "BB", the speculative grade, from "BBB-" previously. The rating agency associated a negative outlook with this rating.
The technical picture remains bearish despite the recent rebound. Prices struck against the resistance level at 378p that we mentioned in our previous article and have resumed their down trend.
The false upward breakout of the upper Bollinger band on a daily chart is a warning signal. The 20-week-simple moving average is heading downward and is playing a resistance role currently at 430p. In addition, the weekly Relative Strength Index (RSI, 14) remains capped by a declining trend line.
As long as 378p is resistance, the trend remains bearish and the most likely scenario is a continuation of the down trend towards 130p (long term target).
Alternatively, a push above 378p would call for a recovery towards 477p (gap).
Source: GAIN Capital, TradingView
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.