Royal Mail (LON: IDS) share price turned green on Monday after opening lower. The shares started the week from fresh monthly lows, but some buying pressure came as the day progressed. Till press time, the shares of International Distributions Services were trading 0.31% below their previous close.
The UK shares shared depicted a mixed sentiment on the first trading day of the week. The benchmark FTSE 100 index gained 30 points and was trading 0.4% higher. Royal Mail shares closed last week with a 7.28% loss, making it the biggest weekly loss since December 2022.
Royal Mail Fails To Meet Delivery Targets
According to the latest Royal Mail 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. Royal Mail share price had a negative reaction to the news as the stock dropped to new lows for the day.
In other news, the CEO of International Distributions Services, Simon Thompson, is expected to leave in October 2023. As per the reports, the board is currently in the process of appointing a new Chief Executive Officer.
Royal Mail Share Price May Drop To 215p Soon
The latest technical analysis suggests that the LON: IDS may retest the 215p level soon. This Royal Mail share price forecast comes due to the confluence of strong support and the 0.5 Fib retracement level on the daily chart.
I expect a strong bounce from this level. In case of failure to bounce, bears may target the psychological level of 200p, which is also the next major support on the daily timeframe. A lot depends on the upcoming earnings report, which is scheduled to be released on May 18.
I’ll keep sharing my updated outlook on Royal Mail shares in my free Telegram group, which you’re welcome to join.
