Royal Mail (LON: IDS) share price has played out almost exactly as I forecasted in my previous analysis. The shares of International Distribution Services are currently consolidating around the key psychological level of 200p. This also marks the retest of the November 2022 lows.
The UK shares are showing a positive price action on Friday. The benchmark FTSE 100 index gained 32 points in the initial two hours of trading. Royal Mail shares were also up 1.98% till press time and changed hands at 200p. The latest analysis suggests time is running out for the bulls.
Royal Mail’s Agreement With CWU Gets Delayed
According to the latest Royal Mail news, the Communication Workers Union (CWU) has delayed the ballot on its agreement with Royal Mail, citing an attack on its members as the reason. As per the details, the suspension will remain in effect until Royal Mail implements immediate measures to restore the quality of services.
In other news, the British regulator Ofcom has opened an investigation against the company as it failed to meet its delivery targets for the year 2022/23. The CEO of International Distributions Services, Simon Thompson, is also leaving in October 2023.
Royal Mail Share Price May Drop More
Technical analysis of LON: IDS chart reveals that the price may drop another 12%. If it doesn’t gain strength above 200p soon, there’s a possibility of a retest of the 174p level. This will mean a retest of the 2022 lows for the shares of the British postal service.
Therefore, Royal Mail share price forecast will become extremely bearish if it gains acceptance below 200p. I still believe, there is a higher likelihood of a bounce from here as the Relative Strength Index (RSI) and Money Flow Index (MFI) are showing oversold status.
I’ll keep sharing my updated outlook on Royal Mail shares in my free Telegram group, which you’re welcome to join.