It may be the case that the “Posties” rejecting the chance to sell their shares in Royal Mail (LON:RMG) is a decent buy signal for the stock on top of the technical plus points. Although it should be said that sentiment towards Royal Mail, either on the stock market or beyond, has never exactly been sky high, it is evident that the share price performance in recent times has been rather better than one might have expected. This concept is underlined by the way the stock is reasonably higher than immediate post IPO levels, which is all the more surprising given the way the financial media for the most part has been going for a doom and gloom approach towards the company’s fundamentals.
What can be seen currently on the daily chart is that there has been a successful test for support at and around the 200 day moving average, now at 487p, as well as an uptrend line from February just below it. The assumption to make is that provided there is no weekly close back below the 2016 uptrend line the upside here should be as great as the post July resistance in the 520s. Indeed, it could very well be the case the shares are about to retest the best levels of this year to date above 540p by the end of this year.
