The BT Group share price was unable to sustain the initial gains of the day as the bulls lost the momentum to bearish action. As a result, the stock is down 1.31% after attempts to break the 191.15 resistance were thwarted. The decline now puts the stock on course for a slight correction.
The BT Group share price advance had come on the back of a positive outlook provided by German investment bank Berenberg and a robust dividend payment announcement. The company reinstated its dividend payment after reporting higher-than-expected profits in the financial year. As a result, investors are to receive 5.29p per share, in addition to the 2.31p each shareholder received at the half-year point.
The decline today seems to be the market reaction to the proposed strike ballot by the Communications Workers Union (CWU). The union has accused the company of “favouring conflict over cooperation.” Deputy General Secretary of CWU Andy Kerr is canvassing union members to hit the social media channels to have the strike vote by 7 pm today (25 May 2022). The outcome of this vote could determine the BT Group share price direction for the rest of the month.
The bears have reversed the upside violation of the 191.15 resistance. This preserves the sanctity of this resistance and opens the door for a corrective decline toward 184.65 (14 April 2022 and 23 May 2022 lows). If the price action fails to secure a bounce to end this correction, a further decline towards 180.60 (1 April and 13 May highs) will be on the cards. 175.55 and 170.85 are additional targets to the south.
On the flip side, continuing the breakout move from the bullish flag requires a break of the 191.15 resistance. If this barrier is cleared, the 193.90 barrier (12 April high) comes into the picture. Finally, the 200.85 resistance that lies ahead must give way for the breakout move to complete at the 206.65 price mark (23 June 2021 high).
This post was last modified on %s = human-readable time difference 14:29