- Summary:
- BT share price has stagnated for the most part in the last week, but will it strengthen its momentum as it approaches the GBX 145.00 level?
BT stock sustained its marginal gains on Thursday, inching up by 0.6 percent to trade at GBX 143.60. The stock has struggled for rhythm this week, trading nearly flat in the last five days. It is currently approaching the long-term resistance at the GBX 145.00 level, signaling a potential slowdown in its ascent.
Three high-profile stake acquisitions have taken place since August, helping boost the outlook for the British Telcos giant. Mexican billionaire Carlos Slim increased his stake to 4.3 percent, while India’s Bharti Enterprises acquired the 24.5 percent stake previously held by French billionaire, Patrick Drahi.
Meanwhile, BT has also begun offloading its assets in Italy, as part of a cost-cutting measure. Reuters reported on Tuesday that Telecom Italia (TIM) had forwarded a non-binding bid aiming to acquire $110 million from BT to take its assets, including data centres.
The sale of the assets will see BT (LON: BT.A) wind up its operations in Italy, with the move having been triggered by an accounting scandal that rocked the company in 2017. Looking forward, BT share price will likely stay on the ascending trajectory in the near-term. The company maintains a positive outlook, boosted by broadband demand and cost reduction following a period of aggressive installation of fibre lines and 5G networks.
BT share price forecast
The momentum indicators signal that BT share price will likely stay on the ascending lane. The RSI reading is at 53, and the price has recently crossed above the middle Bollinger Band, affirming the bullish view. That will likely see the buyers push the price higher to encounter the first resistance at 143.00. However, extended bullishness could enable a break above that barrier to test 144.05.
On the downside, a move below 141.95 will favour the sellers to take control. That will likely establish the first support at 141.00, but a stronger selling momentum could breach that support, invalidating the upside narrative. Also, that could extend the downside to test 140.20.
