IDS Share Price: Royal Mail Targets Yearly Highs After Breakout
IDS share price gained 3.8% on Thursday as the overall investor sentiment in the UK stock market improved. The Bank of England announced that it would keep the rates at 5.25% for the second consecutive time.
This resulted in the FTSE 100 index gaining over 93 points on Thursday as investors started to pour money into shares by ditching safe haven assets.
The shares of the Royal Mail owner seem to be in an uptrend ever since the price found dynamic support at the 200 MA level. The shares have since gained 10.7% from their October lows and have even broken through a major resistance level of 252p. At the time of writing, the shares of IDS are priced at 262.7p and are up 4% from the key level of 252p.
Earlier in September, JP Morgan increased its price target for Royal Mail share price from 300p to 310p as the broker expected big changes to happen in IDS’s revenue and cost. Several analysts also share the same views as they notice a lack of reaction in the share price despite favorable market conditions.
Alongside JP Morgan, Peel Hunt also upgraded its price target from 190p to 260p for IDS share price. The broker also upgraded its rating from “sell” to “hold”. This price target seems to have been perfectly met as the share price is trading a few pennies above that level at press time.
IDS Share Price Forecast
As mentioned earlier, LON: IDS has breached the 252p resistance level as the shares of the Royal Mail owner now sit only 4.3% below its yearly peak. There are strong chances for the price to see a pullback from current levels and retest the 252p resistance level for support.
If the price is successful in flipping the 252p resistance into a support level, the bulls can expect a strong rally toward the 297p which is the next major resistance level. However, the IDS share price forecast will flip bearish if the bulls fail to hold the price above the 252p level. In this scenario, a retest of the 200 MA might be on the cards.