Royal Mail Share Price Forecast: Bulls Must Hold 235p
Royal Mail (LON: IDS) share experienced a high volatility today. The shares of the British postal service opened lower on Monday but the bulls pushed the price slightly higher. While the candle closed slightly above the daily open, it was still 0.78% below last week’s closing price.
The investors remained cautious about buying UK shares on Monday due to the release of CPI data and the FOMC meeting this week. As a result, the benchmark FTSE 100 index tumbled 0.13% but still remained above the 7,500 level.
The overall market sentiment remained mixed as the traders prepared for a potentially volatile week. Side by side, the shares of International Distribution Services tagged their 200-daily moving average before recovering back above 242p.
The LON: IDS daily chart depicts a sideways price action as the price seems to be confined inside a triangle pattern. The direction of the breakout from this pattern would be very critical which may occur very soon. This indecisive price action can be attributed to the recently released financial results which showed a piling up loss.
Royal Mail Share Price Forecast
If you are holding the IDS shares then you need to carefully watch the price action around 258p and 235p. These two levels are the immediate resistance and support levels which may be retested soon. In case of a breakdown below 235p, bears may push the price further down to 192p.
However, a breakout above 258p will be very bullish for the Royal Mail share price forecast as this will put the upward target of 296.8 on the cards. The overall market sentiment in the British stock markets will remain the decisive factor along with the upcoming release of the US inflation data and FOMC decision.