The Royal Mail share price continued the recent slide on Wednesday after a hefty 5.54% selloff. Today’s drop is the 10th in eleven sessions that the Royal Mail share price has endured a decline. The recent selloff has been prompted by a renewed call by the workers’ union representing a large segment of Royal Mail staff, calling for 19 days of strikes to press for improved pay.
Just days after calling out its members in the BT Group, the Communication Workers Union has asked its members in Royal Mail Group to embark on a total of 19 days of strike action that will extend into the Christmas peak season as it continues to agitate for higher pay to combat the impact of the cost of living crisis in the UK.
A BBC report on Tuesday quoted the union as saying that the walkouts will occur on the 13th, 20th and 25 October and will also extend to other dates to be announced later. A spokesman with the Royal Mail Group said the company risked losing 1 million pounds a day if the strikes went ahead, adding that the strikes would only worsen the company’s already precarious financial position.
September has been a bad month for the stock, and the Royal Mail share price is currently down more than 33% this month.
Royal Mail Share Price Forecast
The breakdown of the 191.70 support level (9 June 2020/25 August 2020 highs in role reversal) opens the door toward the 170.60 pivot (4 September 2020 low). If the bulls fail to defend this pivot, the bears will have a clear pathway toward the 151.20 support level, formed by previous lows of 12 May 2020/25 June 2020.
There is an additional harvest point at 124.25 (31 March 2020 low) if there is further price deterioration. On the other hand, the bulls need to force a bounce that clears the 191.70 support-turned-resistance level to facilitate a recovery toward the 217.85 price mark.
This 16 September low must give way if the recovery is to continue, targeting 233.65 initially (20 September high). An attempt at closing the 16 September downside gap becomes successful if the bulls attain the 250.35 price mark (14 September low). 268.25 forms the additional resistance target if the bulls uncap 250.35.