Royal Mail (LON: IDS) share price appears to be consolidating at a very critical level after a strong rally in April 2023. Our analysis reveals that there is a huge upside if the shares gain strength above a critical level on their chart. Shares of International Distributions Services (IDS) are currently trading at 256p.
Royal Mail shares started the week with a positive price action and were up 1.07% on Tuesday. This comes at a day when the benchmark FTSE 100 index is trading sideways ahead of tomorrow’s FOMC decision in the US. The stock of the British postal service gained 12.73% in April 2023.
After 11 months of negotiations and multiple Royal Mail strikes, International Distribution Services and the Communication Workers Union (CWU) have finally have agreed on a deal. According to the latest Royal Mail news, the deal will include a 10% raise for the postal workers along with a one-time lump sum of £500.
The pay dispute between the company and the CWU prolonged more than anyone initially expected. The latest agreement appears to be acceptable for both parties. Even though the deal has been ratified by the CWU’s executive committee, the final approval will be made after a ballot.
The following LON: IDS chart reveals the key levels of support an resistance on a daily timeframe. It is quite evident from the chart that the price has broken above the 252p resistance which is also a key psychological level. Even though the price is trading above this level, this breakout is still not confirmed.
For confirmation, the price needs to close a few daily candles above 252p level and flip it into a support. Such a price action can make Royal Mail share price extremely bullish and send the stock to 300p. However, in case of a rejection from this resistance, I expect a pullback till 233p, where lies the 200-day moving average.
I’ll keep sharing my updated outlook on Royal Mail shares in my free Telegram group that you’re welcome to join.
This post was last modified on %s = human-readable time difference 13:21