RMG.L unable to break through key resistance level
Royal Mail (RMG.L) Technical Analysis Report for Sep 14, 2018 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, RMG.L ended the week 3.83% higher at 485.50 after gaining £3.10 (0.64%) today. Today's closing price of 485.50 marks the highest close since July 17th. Trading up to £3.50 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 484.40, the share confirms its breakout through the previous session's high having traded £1.70 above it intraday. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (RMG.L as at Sep 14, 2018):
Friday's trading range was £4.30 (0.89%), that's far below last trading month's daily average range of £10.60. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being slightly above average.
Unable to break through the key technical resistance level at 485.60, the stock closed below it after spiking as high as 486.10 during the day. The failure to close above the resistance could increase that levels importance as resistance going forward.
Though Royal Mail is experiencing a short-term up trend, this might just be a correction, as both the medium and long term trends are still in negative territory.