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- Royal Mail share price could hit the £600 mark if there is a return of buying momentum to take the stock out of the channel consolidation area.
The ascent in the Royal Mail share price has suffered a momentary stall. However, this brief dip has more to do with a technical correction than the price fundamentals. Indeed, Royal Mail is currently undergoing a makeover. In addition to last week’s announcement of the incorporation of electric vehicles into its fleet (which could cut costs in the long run), uniforms for staff are also getting a facelift.
From 22 June, a new-look uniform will be introduced for the UK’s postmen and postwomen. The new uniforms, which still feature a predominantly red background to match the company’s age-long identity, will reveal new variations that have come about as a result of a nationwide survey.
Royal Mail share price has undergone a tremendous price appreciation, following its delivery of the largest number of parcels in its history in 2020. Royal Mail will also test out a new Sunday delivery service for major retailers this year to capture a part of the market that has seen more UK consumers shop online due to the COVID-19 UK lockdowns.
Technical Levels to Watch
The decline in the active daily candle came off a rejection at the channel’s upper edge. Sellers would be looking for a bearish outside day candle that takes the Royal Mail share price towards the support at 555.00. If this support level fails to hold up to sellers’ scrutiny, a further decline towards 531.8 could be in the works.
On the flip side, a bounce on the channel’s lower border could allow for the price to return for a retest of the upper border. A breakout from the channel first targets 600.2 before the current high at 613.8 comes under bullish challenge. Restoration of the uptrend follows a break of the 613.8 resistance, forming a new high in the process.
Royal Mail Share Price: Daily Chart
