Support, Stop-Losses and Insight into the RMG Share Price

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Royal Mail PLC: Support, Stop-Losses and Insight into the RMG Share Price

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At the start of the new week our market analysis considers the prospects facing the Royal Mail share price.

Royal Mail PLC (LON:RMG) shares are currently positively aligned with the stock trading above the 21 day moving average - a preferred signal for those looking for trend momentum.

Furthermore, for the time period from 23rd of December through to 16th of January we see 6 bullish technical signals outweighing 2 bearish signals.

An analysis of the stock issued by Recognia Inc. sees support located at 399p.

However, those looking to trade the stock should consider a tighter stop-loss level at 411.97 in the opinion of Recognia.

Note that we could see resistance at 440p come into play - this level scuppered further advances at the start of 2015 and could well do so once again.

A bet on further downside could be protected by placing a stop at 411p.
Markets: Is This the Week in Which the ECB Will Act?

Taking a look at global and UK financial markets at the current time is Alastair McCaig at IG:

"This is the week equity markets believe the European Central Bank will announce its own version of quantitative easing as the first couple of hours have seen European equity markets hit multi-year highs. Certainly the markets’ reaction to disappointing economic data in the last couple of weeks has shown they believe ‘bad news is good’, and as the picture gets a little worse its brings the ECB a step closer to implementing QE.

"Before we get to Mario Draghi’s big Thursday event we still have Chinese GDP, German ZEW, UK unemployment and BoE minutes to absorb. Commodities may not be at the forefront of traders’ minds but the relative calm of oil, as it oscillates around $50, has given time to turn our attention back to gold. There have been numerous events that the precious metal could have used as a catalyst to break out of its bear trend and it finally seems that the metal has discovered the strength to do so.

"After being forced to announce several profits warnings during 2014 it appears that 2015 has at least started off on a more positive note for Balfour Beatty, as it has been awarded sole contractor on a £1.5 billion contract covering UK public sector infrastructure maintenance.

"Ahead of Tuesday’s fourth-quarter figures, expectations have increased that BHP Billiton will need to cut $4 billion from its US exposure to shale energy operations. Also out tomorrow will be Rio Tinto with its full-year figures, which are likely to guide the confidence investors have on the heavily weighted FTSE mining sector.

"UK pub chain Greene King has posted disappointing sales figures covering the Christmas period, citing tougher drink drive laws in Scotland that have eaten into its returns.

"Last week saw US markets rally into the close, a particularly positive sign especially with markets being shut today for Martin Luther King Day. Having seen a number of the banks report last week corporate analysis will broaden out as the likes of Netflix, eBay, Verizon, General Electric and McDonalds all report this week, giving even more insight into the state of the US economy.

"Although Europe will spend most of the week preoccupied with its own issues, US attention will no doubt focus on Barack Obama’s State of the Union address on Wednesday morning."