Traders who have seen their holdings blown apart from the steep decline in the Royal Mail share price would be hoping that a new delivery service could save the day for the embattled company.
Royal Mail announced it was conducting a two-week trial to conduct mail delivery to remote locations using drones. Autonomous mail dropoffs are now occurring in the Orkney Islands as part of a test to see if the business model of reaching remote locations would work. Twin-engined crewless aerial vehicles capable of carrying a payload of 100kg are being used in the trials.
The Royal Mail share price has struggled heavily in recent times after UBS downgraded the stock. The bank cut its price target for the stock from 590p to 440p.
The Royal Mail share price is down 2.41% on the day.
Royal Mail Share Price Outlook
Wednesday’s decline has put the 407.0 support level at risk. If this level gives way, a move towards 392.3 could be on the cards. The 8 January high at 367.9 could then enter the picture as an additional downside target.
On the other hand, rally-selling opportunities could arise if there is a bounce from the present support, and this allows bulls to target 431.2 initially before 442.9 and 452.6 enter the picture. An additional target to the north is found at 480.1, which is the 78.6% Fibonacci retracement level from the 23 September to 6 October price swing.