Rolls-Royce share price forecast ahead of half-year results

The Rolls-Royce (LON: RR) share price is moved sideways ahead of the upcoming half-year results scheduled for Thursday this week. The stock is trading at 90p, where it has been in the past few days. The shares are about 40% below the highest level in 2021, bringing its total market cap of over £7.5 billion.

Rolls-Royce half-year results

Rolls-Royce Holdings has been in the spotlight in the past few days. The company unveiled Tufan Erginbilgic, a former BP official, as the new Chief Executive. He will become the CEO in January.

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He will replace Warren East, who has dramatically changed the company during the pandemic. As the CEO, East sold several businesses during the pandemic and announced thousands of layoffs. He also raised billions of dollars to safeguard the company as it faced existential crisis during the pandemic.

Tufan will inherit a company that is in a transition. The firm has announced plans to build small nuclear reactors in the UK. It also partnered with Qatar Foundation to invest, develop, and scale-up climate-tech businesses in the UK and Qatar.

Further, Rolls-Royce is seriously considering moving to narrow-body aircraft engines that it ditched a few years ago. The company hopes that it will generate strong results since the sub-sector has seen a strong rebound in the past few years. 

Most importantly, Rolls-Royce Holdings is facing the challenge of soaring inflation. The cost of its key commodities like titanium, aluminum, and steel have jumped sharply recently. It has also seen a surge in high wage inflation.

The next key catalyst for the Rolls-Royce share price will be the company’s half-year earnings. Analysts expect that the firm will record strong results because of the rebound of aviation. This is notable since the company makes most of its money servicing airlines that uses its engines.

Rolls-Royce share price forecast

The daily chart shows that the RR share price has been in a tight range in the past few days. The stock has remained between the important support and resistance level at 78.11p and 94p. The shares are along the 25-day and 50-day moving averages. It has also moved between the horizontal channel. 

Therefore, the stock will likely continue falling as sellers target the lower side of the channel at 78.11p. A move above the resistance at 94.10p will invalidate the bearish view.