The BT share price is down 1.03%, as the company looks certain to face a strike from its workers. The ballot on the proposed industrial action has entered the final week. Workers are demanding improved pay packages, even as shareholders and top company executives look set to share mouth-watering dividends and bonuses.
The BT Group’s Chief Executive Officer and Chief Financial Officer are set to receive bumper pay packages this year after the company raked in £1.3 billion in profit. CEO Philip Jansen is to get £3.5million, a sum said to be nearly 100 times more than the pay of the company’s lowest level workers. Shareholders will also be netting £760 million, leaving workers feeling left out in the face of stratospheric inflation.
Last week, Deutsche Bank downgraded its BT share price target by 33%. This price downgrade reflects the sentiment of institutional investors to events playing out in the company. If the strike goes ahead, we could see a further decline in the BT share price.
The price action failed to beat the neckline of the evolving double bottom at the 191.15 resistance level. The rejection is inching towards the support at 183.85. Below this level, additional southbound targets are seen at 180.60 (18 May and 9 June lows) and 175.55 (18 March 2022 lows).
A further price deterioration sets off a decline below the 175.55 support, targeting
downside targets 170.85 (15 November 2021 and 17 December 2021 lows) and 166.60 (9 March 2020 low) in a move that invalidates the double bottom pattern.
On the other hand, breaking the neckline at 191.15 opens the door for a measured move toward the 206.65 resistance level (24 June 2021 high). To achieve this, the bulls must break the resistance levels at 193.90 (13 April 2022 high) and 200.85 (16 February 2022 high).
This post was last modified on Jun 27, 2022, 14:33 BST 14:33