Rolls-Royce's shares up more than 22% for the day as the company reported a sharp improvement in its financial performance in 2022.

From a technical aspect, RR’s share are trading around 132p a share. Shares up more than 22% for the day so far as the company reported a sharp improvement in its financial performance in 2022. We can see that solid support is established below and the continuation of the bullish trend remains in play. Support now sits at 114p then around 110-111p (along the trendline). A break and close below the trendline could see a further retracement towards 103p. On the other hand, due to such a sharp incline, we may see the price edge higher before pulling back. Hence, aiming for around 140p as the MACD has now turned positive. However, investors should be wary as the RSI reads 77, suggesting the stock is currently ‘overbought’. A slight dip could occur before a potential bounce higher.