Royal Mail downtrend

Friday, Feb 16 2018 by
5a8722604f121royal_mail.PNG

Any of the chartists here confirm the bearish hammer on the Royal mail chart today, its defo overbought, and I believe it will turn into a downtrend for a short period. anyone else have any thoughts on the chart?


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Royal Mail plc provides postal services. The Company's segments include UK Parcels, International & Letters (UKPIL), General Logistics Systems (GLS) and Other. UKPIL operates in the United Kingdom collecting and delivering parcels and letters through approximately two main networks, the Royal Mail Core Network and Parcelforce Worldwide. UKPIL provides letter and parcel services to and from countries around the world under reciprocal arrangements with other overseas postal administrations. It is also responsible for the design and production of the United Kingdom's stamps and philatelic products. Parcelforce Worldwide is an express parcels business. The Company operates across a network of approximately 50 depots throughout the United Kingdom. GLS operates in continental Europe and the Republic of Ireland and has a ground-based deferred parcel delivery network in Europe. GLS provides parcel and express services, as well as logistics solutions. more »

LSE Price
481.2p
Change
1.5%
Mkt Cap (£m)
4,741
P/E (fwd)
12.2
Yield (fwd)
5.4



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8 Posts on this Thread show/hide all

tomg23 16th Feb 1 of 8

It's way too extended, might make a good short candidate back to the 50 day ma. Not a qualified chartist by any means though

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underscored 16th Feb 2 of 8

What's your timeframe?

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vik2001 16th Feb 3 of 8

In reply to post #326763

up to a week is my timeframe. I just think the sp has got way to extended up north and might make a good short opportunity for the short duration, back down to possibly at least 500p?


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underscored 16th Feb 4 of 8

The shorter your timeframe, the harder it is going to be to pick signal from noise.

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jonesj 16th Feb 5 of 8

I don't have thoughts on any chart, but is there any valuation based case for buying this stock ?

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Taff6 16th Feb 6 of 8

Look at the weekly chart!

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lightningtiger 17th Feb 7 of 8

It's only a little hammer down. The general trend is up as can be seen by the 2 positive MA's on your chart.The MACD is still in positive territory and Stocopedia has momentum @ 98 with all green lights showing in the momentum section. If at some stage there is an engulfing ted candle,showing then watch out!

Not sure what the 2 MA'S on your chart are but you can tighten them to 5 & 8 day MA, and when those two cross over, again, it's time to get out. Raise your stop loss up a bit to safeguard profits.

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Velo 17th Feb 8 of 8

Hammers are usually bullish reversal signals, appearing at trend bottoms. Don't think there is such a thing as a 'bearish hammer' (they get called by other names) but I get your drift. It is a bearish signal.

Only thing is, you must have taken the image of your chart before the day's trading closed, as that's not what's showing on Friday's close. It doesn't exist anymore. What I'm currently seeing is virtually a Doji but with the candlestick preceeding it, becomes a Bearish Harami Cross, pattern. Still bearish but if it is a Bearish Harami Cross (not 100% sure; could be a good ol' fashioned Doji, plain and simple) then it's of only moderate bearishness.

Another thing to take into consideration in these current days of volatility (led by Wall Street's troubles) is to establish if the market is buillish or bearish. It was bullish before the past week or so. Remains to be seen if that remains the case in coming weeks/months, but usually in a bearish market, exit signals at the top of an uptrend get put on steroids, and strong bullish reversal signals at the bottom of a trend become weaker. ie., all company bad news in a bear market get punished heavily and vica versa with all good news in a bearish market being virtually ignored. Officially we are not in a bearish market yet, so if it is a Bearish Harami Cross then it is of only moderate bearish strength.

PS. Almost forgot - Yes, agree, It is also very Overbought, and has been in overbought condition since the very beginning of February, furthmore most indicators and oscillators back up the overbought condition; so I believe the SP may unravel somewhat in the coming week/s.

It's in a very, very,  strong, admirable uptrend, so is not looking to willingly give up that bull trend so easily, it's been very strong indeed, but with so many indicators in agreement with the latest candlestick pattern, also supporting an overbought condition, it all suggests to me, that beautiful uptrend may be about to get it's hair ruffled a bit.

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