Royal Mail Share Price: Why I expect RMG to Trade Above 450

Royal Mail’s share price is up by more than six per cent in today’s trading session. The current bull run is a continuation of the past two days that have seen the prices rise by 10 per cent. The current share price growth has come despite the company struggling with staffing issues. Recent reports show the company had failed to deliver posts and parcels for weeks. This includes Kettering which had to wait for weeks before receiving their packages.

Although the company has since offered an apology, many villagers were left frustrated by the services of one of the largest companies in the UK. Such public display of poor services can result in poor performance in the stock market. However, Royal Mail share prices look to have been able to withstand the storm.

The past few days have not all been doom and gloom for the company. Reports also indicate that the company has installed an automated sorter at their Southampton depot. The installation will replace the physically demanding manual sorting process with automation and meet the surge in demand for parcels and online shopping.

This will see the company increase its ability to meet the demand for its services. The recent delays in places such as Kettering are also likely to be addressed by the sorting machine. The multi-million-pound investment program has likely had an impact on the markets and resulted in the current price gains.

Royal Mail Share Price Prediction

The chart below shows a six per cent price surge in today’s trading session. The prices have also been in a long-term bullish move for the past few days, and today’s surge is a continuation of that trend. Looking at both Williams Alligator and RSI indicators, the prices also look to be reversing the trend.

Therefore, there is a high likelihood of the current bullish trend to continue. There is also a high likelihood of the prices hitting the 369p resistance level and trading above it. Based on the chart below, I expect the prices to rise and hit the $452 long-term resistance level in the next few days. This will be a 26 per cent increase from the current prices.

Royal Mail Daily Chart