Rolls-Royce downgraded, the trend remains bearish
Nicolas Suiffet June 1, 2020 4:04 PM
Rolls-Royce, the specialist in aircraft engines, has had its credit rating downgraded by S&P Global Ratings to "BB", the speculative grade, from "BBB-" previously
Rolls-Royce, the specialist in aircraft engines, has had its credit rating downgraded by S&P Global Ratings to "BB", the speculative grade, from "BBB-" previously. The rating agency associated a negative outlook with this rating.
The technical picture remains bearish despite the recent rebound. Prices struck against the resistance level at 378p that we mentioned in our previous article and have resumed their down trend.
The false upward breakout of the upper Bollinger band on a daily chart is a warning signal. The 20-week-simple moving average is heading downward and is playing a resistance role currently at 430p. In addition, the weekly Relative Strength Index (RSI, 14) remains capped by a declining trend line.
As long as 378p is resistance, the trend remains bearish and the most likely scenario is a continuation of the down trend towards 130p (long term target).
Alternatively, a push above 378p would call for a recovery towards 477p (gap).
Source: GAIN Capital, TradingView
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.
Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.