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Royal Mail is nearing overbought territory

 

Royal Mail, a mail and courier company, posted 1H adjusted profit before tax declined 87.7% on year.

Royal Mail, a mail and courier company, posted 1H adjusted profit before tax declined 87.7% on year to eight million pounds and adjusted operating profit dropped 77.6% to 37 million pounds on revenue of 5.67 billion pounds, up 9.8%. Regarding the outlook, the corporate stated: "Royal Mail revenue is now projected to be £380 million to £580 million higher year on year, (...) We anticipate Royal Mail would be better than reach , at an adjusted operating profit level, if revenues outturned at the upper end of the scenario."


From a chartist’s point of view, the upside breakout of the upper end of a brief term rising channel has reinforced the strength of the bullish trend. Prices are supported by the rising 20/50DMAs. The daily RSI (14) is bullish but highly overbought. Potential pullback to the 50DMA currently at 249p might be seen as a buying opportunity. Only an opportunity below the support zone 249p – 222p would invalidate the bullish bias. Next targets are set at 330p and 370p (horizontal resistance thresholds).

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