The Royal Mail share price is in a tight range as investors position themselves for the new month. The stock is trading at 578p, which is a few pips below the year-to-date high of 618p. The stock was stuck in this range in June this year.
Royal Mail news. Royal Mail has had one of the best runs in the past few months. The stock has surged by more than 385% from its lowest level in 2020. This trend is mostly because of the strong demand for the company’s products as more people stayed at home.
As a result, the company posted a 726 million pound profit from 180 million pounds a year before. The revenue increased by 16.6% to more than 12.6 billion pounds. Therefore, the recent sluggish performance by the stock is because of concerns about the firm’s growth as the UK economy reopens.
Some of these answers will come on July 21 when the company is expected to publish its trading statement. Analysts expect that its revenue recorded some slowdown as the UK accelerated its reopening process.
Royal Mail share price forecast
The daily chart shows that the RMG share price has been in a consolidation phase. The stock has gone nowhere in the past month and is slightly above the 25-day and 50-day moving averages (MA). As a result, the Relative Strength Index (RSI) has also formed a bearish divergence pattern. A closer look also shows it has formed what looks like a bullish flag pattern.
Therefore, there is a possibility that the stock will breakout higher in July. If this happens, the next key resistance level will be 700p. However, a drop below 500p will signal that bears have returned and that they will push it lower.
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RMG share price chart
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