Will Rolls Royce print 60% correction to 180p?Since the long idea (linked below) price action has melted up 600% in only 21 months. Astonishing. A plethora of long ideas are now published, including on this platform.
The Motley Fool, July 11th - recommended buy
“Rolls-Royce’s share price looks very undervalued to me, with strong business growth prospects, and an investment-grade rating adding to the firm’s allure.”
People actually pay money for this rag. This analysis from WW is free.
Businessinsider, June 26th - According to TipRanks, RR stock has received a Strong Buy
“Deutsche Bank Stays Bullish on Rolls-Royce (RR) Amid Industry Headwinds”
It goes on..
“Menard is a five-star-rated analyst as per the TipRanks Star Ranking tool. Through this tool, TipRanks monitors the performance of many financial experts, ranking them based on their success rate, average returns, and statistical significance.”
It is fascinating to see so many turn bullish at this time. It is a reminder why so few traders (and hedge funds) succeed. Greed.
** The Technical Analysis **
On the above 3 week chart we have:
1) RSI touches 89.3 (blue line), it has never been at this level in the entire history of the business. I remind you this is a 3 week chart. The entire history is shown below. These are bubble levels of strength recorded on the RSI index.
2) RSI support prints breakout. Look left.
3) The Gravestone DOJI candlestick prints across multiple timeframes, including this chart.
4) Why 60% correction? Significant market corrections in the stock were always arrested at the same levels when looking left.
4a) Annual support (yearly candles).
4b) The Fibonacci 0.382. In 2016 the correction was even further, down to the 0.618
The orange line is where both those conditions 1st confirm.
Is it possible price action continues up like the financial rags claim? Sure.
Is it probable? 100% no.
Ww
RSI big picture 3 week