AFTER its troubles over the last few months it seems that Rolls Royce is continuing to impress potential clients. The continuous stream of servicing contracts is positive enough to keep the company share price recovering after the recent engine issues. The share price has continued this recovery since the issues towards the end of 2010, but still seems to be struggling to push above the 670p level. Last week, it was revealed that financing costs had been a major cause for a fall in profits in 2010, with a one off charge of £56m coming from the engine failure on the Qantas flight back in November.
For all the good news, we may well see the share price struggle to give us much of a move above the 660p-670p mark. However, this period of indecision is an ideal time for traders to take positions at the top of the range at 670p and at the bottom at 625p. Alpari UK is offering a spread of 656.50p-657p.
Miner BHP Billiton reports its half-year results tomorrow. Expectations are set to follow the success of fellow miners Rio Tinto and Xstrata. Analysts have forecast a profit of $15bn. This comes off the back of soaring commodity prices. BHP could see more upside if 2,437p remains a support level, and if it continues to near its 52-week high. Capital CFDs quotes 2,542.2p-2,545.8p.