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Royal Mail Share Price Extends Gains Amid Sideways FTSE 100 Index

Royal Mail (LON: IDS) share price has rebounded very strongly from its May 2023 lows. The shares of the British postal company tagged the 191p level last month and got a strong bounce. Consequently, the shares of International Distributions Services are trading 10% above those lows.

The UK shares are showing a mixed price action on Thursday. The benchmark FTSE 100 index gained 10 points after rising by 0.13%. Royal Mail shares were also up 1.74% till press time and changed hands at 211p. The latest analysis suggests that the bulls are gaining momentum after a sharp sell-off.

CWU Suspends Ballot Amid Attacks On Its Members

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, International Distributions Services recently reported a £748 million loss in the year ending on March 2023. The management blamed the CEU strikes and decrease in productivity for this loss. The British regulator Ofcom has opened an investigation against the company as it failed to meet its delivery targets for the year 2022/23.

Royal Mail Share Price May Retest 225p Soon

Technical analysis of the LON: IDS chart reveals that the price is in the midst of a recovery after falling below the 200p level. There could be another retest of this level to confirm the reclaim, but the shares may target the 215p resistance first.

Therefore, the Royal Mail share price forecast will become bullish once again if the shares retest the 200p and get another bounce. In this case, the first target for the bulls could be the 225p level which is also the 0.5 Fib retracement level.

In the meantime, you are also welcome to follow me on Twitter to keep track of my personal trades and the latest analysis on Royal Mail shares.

Royal Mail Share price chart
LON: IDS Chart