RMG.L pushes through 200-day moving average
Royal Mail (RMG.L) Technical Analysis Report for Jul 13, 2018
Moving higher for the 2nd day in a row, RMG.L ended the week -0.79% lower at 487.10 after gaining £1.60 (0.33%) today on low volume. Trading £3.90 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing above Thursday's high at 486.10, the market confirms its breakout through the prior session's high having traded £5.70 above it intraday. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Friday's trading range was £5.70 (1.17%), that's far below last trading month's daily average range of £10.73. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being slightly below average.
Prices are trading close to the key resistance level at 491.90. After trading as low as 486.10 during the day, the stock found support at the 200-day moving average at 486.69.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term. Royal Mail managed to break above the 200-day moving average at 486.69 today for the first time since November 22, 2017.
Selling could accelerate should prices move below the nearby swing low at 475.90 where further sell stops might get triggered.
While classical technical analysis indicates a neutral sentiment for the next trading day, our quantitative statistics show a different picture being bearish.