- Summary:
- The target of 296p could be on the cards for Royal Mail share price if the bulls flip the 252p level into a support.
For the past few days, Royal Mail (LON: IDS) share price has been trading sideways. The price seems to be consolidating above a key resistance level in an attempt to flip into a support level. The shares are down 2.63% since the start of the week. However, bulls remain optimistic about more upside in the coming days.
The ongoing uptrend in the UK shares is evident in the FTSE 100 index, which made fresh monthly highs on Thursday. The release of the US CPI data had very little effect on the UK equities as the overall market sentiment remained positive in the penultimate session of the week. Royal Mail shares underperformed and were down 0.44% on Thursday.
JPMorgan Upgrades LON: IDS
In a recent development, JPMorgan upgraded its outlook on the Royal Mail share price from ‘Neutral’ to ‘Overweight’. This means that the investment bank considers the stock to be bullish and expects it to rise in the coming months.
In other reports, the International Distribution Services is still struggling to streamline its operations even months after the end of the CWU strike. There are complaints from customers in multiple locations about the delivery delays. The company intends to hire around 16,000 temporary staff for the upcoming festive season.
Royal Mail Share Price Analysis
On the basis of our technical analysis, the LON: IDS outlook remains positive due to a breakout above 252p resistance. So far, bulls are struggling to gain strength above the key resistance level, but this may prove to be a bullish consolidation.
My previous Royal Mail share price forecast of 296p will remain on the cards till the price remains above 252p. A breakout in the FTSE 100 index above 7,690 resistance may act as a catalyst for a surge in the shares of International Distribution Services.
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