Royal Mail is nearing overbought territory
FOREX.com November 19, 2020 8:33 AM
Royal Mail, a postal service and courier company, posted 1H adjusted profit before tax declined 87.7% on year.
Royal Mail, a postal service and courier company, posted 1H adjusted profit before tax declined 87.7% on year to 8 million pounds and adjusted operating profit dropped 77.6% to 37 million pounds on revenue of 5.67 billion pounds, up 9.8%. Regarding the outlook, the company stated: "Royal Mail revenue is now projected to be £380 million to £580 million higher year on year, (...) We anticipate Royal Mail would be better than break even, at an adjusted operating profit level, if revenues outturned at the higher end of the scenario."
From a chartist’s point of view, the upside breakout of the upper end of a short term rising channel has reinforced the strength of the bullish trend. Prices are supported by the rising 20/50DMAs. The daily RSI (14) is bullish but highly overbought. Potential pullback to the 50DMA currently at 249p could be seen as a buying opportunity. Only a break below the support zone 249p – 222p would invalidate the bullish bias. Next targets are set at 330p and 370p (horizontal resistance thresholds).
Source: GAIN Capital, TradingView
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.