Technical Analysis Snap: Rolls Royce flying high

31st Jul 2009 11:29

Despite the severe recession in civil aerospace markets Rolls Royce has managed to buck the trend with a continually rising order book. By the end of last month the order book had risen 4% to £57.5bn, and with underlying profits up by 9% to £445m, its order book continues to look fairly healthy across all divisions, defence in particular. With an increase in dividend to 6p a share it is one of a select number of stocks to actually increase its dividend in a time of dividend reductions.The share price also reflects this having bounced over 50% back from its October lows of 237p. The share price is currently finding resistance around its August and September 2008 highs of around 410p. This level is also the 50% retracement level of the share price decline from the 2007 highs around 567p, to the lows last October of 237p. Another important resistance area lies at 446p, which is a 61.8% Fibonacci resistance of the same move mentioned earlier. It also coincides with the highs in March and April 2008, highlighted in red. The upward momentum should remain intact while the support line (blue) from the March lows at 360p remains intact.For periodic TA updates follow me on TwitterAlso read my Investors Guide to Technical Analysis and Level 2