Rolls-Royce Shares Find Support in Red/Green Move – Highs in Sight

Rolls-Royce shares (LON: RR) have just come off another record setting week, with the new highs of 822.40p in Friday's session temporarily pushing the market cap to £70billion. Having re-tested support at 800p, the share price is once again in green territory (+0.35%) with highs once again in sight.

The company has seen a wave of bullish sentiment so far this year, with the 38% gain YTD only being temporarily slowed by tariff uncertainty that hit markets in early April. The stock fell to 635p in the aftermath, as tensions surrounding international trade tariffs bled into sentiment, only for a sudden about turn that has seemingly resumed normal service at RR.

The average price target given by analysts of 817.77p offers a small potential upside from the current price level, although a recent reiteration of Buy from Citi coming with a price target of 900p provides a more recent bullish call. Many of the analysts attribute their new price targets and ratings to Rolls-Royce's robust financials and lucrative defense contracts.

Taking a glance at the 5 year chart on the weekly candles, and the ascent of RR is clear to see. There have been a few bumps along the way, but it appears hard to see anything other than new highs in the weeks to come. Expect to see some resistance back at the recently set highs as price discovery continues.