Royal Mail upgrades forecasts

Graph showing a slow uptrend
Fiona Cincotta
By :  ,  Market Analyst
Royal Mail has surged higher this afternoon after upgrading FY revenue forecasts thanks to better than expected letter volume trends and revenue trends. 

Full year revenue 2020/1 is now expected to be over £900 million higher year on year.

Adjusted operating profit is expected to be £700 million. 

Furthermore, Royal Mail is due to complete a restructuring which should now cost £90 million instead of £140 million. 

The stock trades at at 2.5 year high after being a clear beneficiary of the pandemic. 

The weekly chart shows an established bullish trend, although the RSI is firmly in overbought territory so some consolidation could be on the cards. 

Resistance is seen at 490 ahead of 530 a level from mid 2018.

Support can be seen at 445 prior to 370 a resistance turned support from 2018.

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