- Summary:
- BT share price forecast: The latest analysis suggests, time is running out for the LON: BT.A bulls to reclaim 148p level.
BT (LON: BT.A) share price is currently in the midst of a recovery after a massive sell-off in May 2023. The shares of the British telecom giant appear to be losing momentum after a great rally in Q1. The latest analysis shows the stock is retesting a very critical level on its chart, and a rejection could be very brutal.
After a bounce at the start of last week, BT shares closed the week with a sharp decline on Friday. On Monday, the shares had a 1.95% rebound as the stock opened higher. At press time, the shares are changing hands at 146.4p as the FTSE 100 index gained 35 points.
BT Group’s Openreach Gets Regulator’s Nod
As per the latest BT Group plc news, Ofcom has finally approved the Openreach’s pricing offer for full-fiber broadband. The British regulator had earlier withheld its decision on the pricing due to concerns raised by the rival altnets. The company recently released its earnings report for the period ending on March 2023. The report showed that the pre-tax profit dropped to GBP 1.73 billion from the last year’s GBP 1.96 billion.
Following the report, BT share price plummeted to its lowest level since February 15 before rebounding strongly. While the revenue of GBP 20.68 billion was more than the company-provided consensus estimate of GBP 20.52 billion, it was still lower than the FY2022 revenue of GBP 20.85 billion.
BT Share Price Retests The Most Critical Resistance
The following LON: BT.A chart reveals that one of the most critical levels on the chart is the 148p level. This level has been acting as resistance since September 2022. Now once again, the price is trading below it. The disappointing earnings report and the announcement of massive layoffs by 2030 have turned this level into a major resistance once again.
I believe BT share price forecast will flip extremely bearish if the price fails to break above 148p soon. Such a rejection can drop the price to 134p, which is a major support level that lies close to the 200-day moving average. The price has already filled the gap, which was created after a massive gap-down opening on the day of the earnings report’s release.
In the meantime, I’ll keep sharing updated outlook on LON: BT.A in my free Telegram group that you’re welcome to join.
