The Royal Mail Share Price opened today’s trading session trading at 262p and is already up by 2 percentage points. Today’s gain in the markets comes amidst reports that the Communication and Workers Union (CWU), its largest labour union, had cancelled their strike following Queen Elizabeth’s death.
Reports further indicated that the planned strike would have seen Royal mail and rail workers down their tools over what they termed as poor pay. There were also reports that the Royal Mail was in talks over a potential sale of the company.
Dave Ward, the General Secretary of the CWU, in an interview, had speculated that Royal Mail was in secret talks with a private investment group which was looking to take over Royal Mail. However, these reports were rubbished by the company, who, in a statement, insisted that they were not in any secret talks to sell the company. The company also emphasized that they were not involved with such talks with any other entity.
Last week, the Royal Mail closed the markets on a high after going up by 2.9 per cent on Friday. However, the gain in the market did not stop the company from closing the week with a net loss of less than a percentage point.
Looking at the chart below, we can also see the struggle experienced during last week’s trading sessions has persisted for months. With the company currently being deadlocked in discussions about their workers’ compensation, which has resulted in continued threats of a national strike by CWU, the Royal Mail share price prospects of gaining in the markets continue to dim.
However, following the recent cancellation of the nationwide strike, we might continue to see a small boost in the company’s share. It is highly likely that, throughout this week, the Royal Mail share price will be in an upward trend and possibly close the week with a price gain. A possible trade above 280p in the coming sessions is a highly likely price level. However, a drop below the 257p demand level will invalidate my analysis.
This post was last modified on Sep 12, 2022, 14:46 BST 14:46