BT share price is holding steady even as the company faces its first major strike in more than 30 years. BT Group shares are trading at 140p, which is 16% above February’s low of 120p.
What happened: BT Group, the giant telecommunication company is facing more pressure from its employees. The workers, under the Communication Workers Union (CWU) are set to vote for a national strike in the next few weeks.
They are complaining about the company’s decision to eliminate some of the workers and close sites amid the pandemic. The company could close more than 270 offices. The CEO, Philip Jansen is also considering making more changes, including selling its fast-growing OpenReach network. Also, the company is bracing for more regulations by Ofcom. The regulator is expected to announce new price control measures soon.
A national strike would be detrimental to the BT Group and the BT share price because it would affect the delivery of key services. It would also see some customers moving to its competitors.
The four-hour chart shows that the BT share price has made strides in the past few weeks. It has managed to rise by more than 14% from 122p to the current 140p. It has also moved above the ascending channel that is shown in black and is slightly above the 23.6% Fibonacci retracement level. The price is also slightly above the 25-day and 15-day exponential moving averages.
Therefore, the BT share price could keep rising as bulls attempt to move above last week’s high of 144p. However, a drop below 134.60 will invalidate this trend.
