The BT share price is under pressure today even as traders digest yesterday’s budget and the upcoming retirement of the company’s chairman. The stock is trading at 131.90, which is below yesterday’s high of 138.20p.
What happened: BT share price spiked yesterday after the Rishi Sunak speech. That’s because the firm is expected to benefit from a new policy that will enable it to cut their tax bill if they boost their investments. As a result, companies like BT will be able to reduce their tax bills by about 130% of the cost of the investment.
The stock is also wavering as investors reflect on the upcoming changes in BT Group. Earlier this week, the company announced that Chairman Jan du Plessis will retire this year. While he has been a successful board chair over the years, his performance at BT has been relatively weak. Indeed, BT shares have dropped by 50% in his tenure. Therefore, there could be a light at the end of the tunnel following this decision.
The four-hour chart below shows that the BT share price broke-out below the purple channel last week. Yesterday, however, the stock rose and moved above the 23.6% Fibonacci retracement level. The shares remain above the 100-weighted moving average, which has provided a strong support.
Therefore, in my view, the stock could continue rising in the near term as bulls target the YTD high at 148p. However, a decline below last week’s low of 122p will invalidate this trend.
