Rolls-Royce's share price was heavily penalized and is now in an oversold situation near to a solid support area.

The financial situation of the group is good with no debt and an important growth potential. Moreover, the margin ratio is well oriented and should improve due to the development of the revenue.

In the past few sessions, Rolls-Royce's stock have suffered from a sharp fall and is now coming back on significant level support. This situation gives credit to a potential technical rebound. Thus, the stock could find new energy and would rise towards the next GBp 1084 resistance.

Thanks to the technical pattern and Rolls-Royce’s strong fundamentals, active investors can take a long position above GBp 1084. The downside potential is limited and the timing seems perfect to benefit from a technical rebound. The goals will be fixed at GBp 1194 after the breakout of the first resistance of GBp 1147. However, a bearish trend would regain the upper hand if the security crosses GBp 1084.