Rolls Royce Stock Rebounds, But Beware of Stubborn Resistance Level
- Rolls Royce stock price has struggled to go above 1,180p since it peaked at 1,195p in September
- The stock is about to form a double-top pattern, seen as a bearish signal
- Strong orderbook and rebound in aviation market and SMR provide strong propulsion
For Rolls-Royce, 2024 might have been about getting back on its feet, but 2025 is shaping up to be the year they really took charge. The story is now about growth, due to Civil Aerospace and Small Modular Reactors (SMRs).
Under CEO Tufan Erginbilgiç, Rolls-Royce has seen close to a 90% rise in 2025. This recent 5% jump is driven by high demand in civil aerospace, with a sharp rise in engine flying hours, plus more defense deals.
Morningstar data shows large-engine flying hours (EFH) reached 109% of 2019 levels in the second half of 2025. A large part of Rolls-Royce’s income comes from service per hour deals, so this rise in flight activity means more cash flow.
The Wylfa nuclear site announcement is a key point for Rolls-Royce. On November 13, the UK government chose Wylfa as the first location for three Rolls-Royce SMR units. While the SMRs won’t produce much income for some time, the government’s selection of Wylfa has reduced the project’s risk for investors, which allows for a higher stock valuation now. The focus is currently on the company’s ability to reach its £3.1bn operating profit guidance.
The 1,180 barrier has been hard to break since September, but recent activity suggests it might happen soon. The barrier has been hard to pass since September’s 1,195p high, and it’s worth considering if demand will push it higher. Rolls-Royce’s share price is getting help from the sector, and investors might see different entry points as economic factors change.
Rolls Royce Stock Price Forecast
From a technical point of view, Rolls-Royce stock has a lot of upward momentum right now. It’s trading above its 10,20, 50 and 200-day EMA, and has its RSI at 60.36. The first resistance will likely be at 162.97p, and if the buyers manage to convert that into a support, they could test the resistance around 1,180p.
Action below the 1,140p pivot will likely find its initial support at 1,128p, currently aligning with the 10 day-EMA. Going below that level will invalidate the upside narrative. Also, that could open the path to go lower to attempt the second support at 1,113.50p.
Rolls Royce daily price chart with support and resistance levels as of December 23, 2025. Created on TradingView
Failure to break 1,180 could lead to a “double top” formation, and that could potentially result in a retracement to the 1,113p support level.
Reaffirmed 2025 profit guidance, surging civil aerospace demand, and large-engine orders provide fundamental support. Combined with recent rebound momentum, this presents a realistic chance of breaking the barrier.
Rolls Royce is yet to start generating income from the SMR contracts. However, this frontier is seen as a major growth segment for the company and most investors have priced it in their stock evaluations.
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