Rolls-Royce under pressure
Nicolas Suiffet August 27, 2020 5:41 PM
Rolls-Royce, the engineering group, announced that 1H underlying net loss widened to 3.33 billion pounds from 28 million pounds in the prior-year period
Rolls-Royce, the engineering group, announced that 1H underlying net loss widened to 3.33 billion pounds from 28 million pounds in the prior-year period and underlying operating loss amounted to 1.67 billion pounds, citing 1.2 billion pounds one-off charges in Civil Aerospace related to COVID-19 and compared with an underlying operating profit of 203 million pounds a year ago. Also, revenue dropped 24.4% on year to 5.56 billion pounds. The company added: "While our actions have helped to secure the Group's immediate future, we recognise the material uncertainties resulting from COVID-19 and the need to rebuild our balance sheet for the longer term. We have identified a number of potential disposals that are expected to generate proceeds of more than £2bn, including ITP Aero and a number of other assets."
From a technical point of view, the stock price remains in a downtrend, capped by the declining 20WMA since May 2019. The weekly Relative Strength Index (RSI, 14) remains below a former rising trend line and below 50%. As long as 306p is resistance, the risk of a break below Aug 3rd low at 212.1p will remain high. This would open a path to see 130p. Alternatively, a push above 306p (breakout confirmation of the 20WMA) would call for a recovery towards 354p and 427p.
Source: GAIN Capital, TradingView
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.