Stock of the day: Rolls-Royce

By Tomasz Wisniewski|

Published: November 08 2021, 08:14 GMT+0

Stock of the day: Rolls-Royce

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As the whole world awaits the opening of the US markets to see what Tesla’s price is after the weekend tweet storm, we’ll open the new week with analysis on Rolls-Royce, where we do see a nice bullish opportunity.

It’s not the first time we’re mentioning this instrument. We mentioned it before on August 24th and back then we were bullish saying:

Rolls-Royce is doing really great, and in fact, today we received a confirmation of a long-term buy signal. The positive sentiment is coming from the fact that the price escaped from the small pennant formation (blue lines).

How did that work out? A flawless victory! The price went higher, then made a correction and then moved significantly higher. Rolls-Royce broke the resistance on the 1.32 (blue) and at the end of September, managed to set new long-term highs, slightly below the 1.5. Since then the price has entered another correction, this time a flag (black lines) and this is the flag we’d like to focus on today.

As you can see, the flag managed to test the 1.32 as a support and this test ended with a bullish bounce. After the bounce, the price accelerated, and on Friday broke the upper line of this formation. In theory, that’s a very strong buy signal and that’s why, Rolls-Royce is our stock of the day today.