LONDON, UK - APRIL 25TH 2017: The homepage of the official website for EE, the British mobile network operator, on 25th April 2017.
BT (LON: BT.A) share price is once again trending lower after showing a significant recovery. The shares of the British telecom giant rebounded 2.71% last week. However, the bulls failed to gain any momentum, and the shares turned red once again.
On Monday, UK shares are showing a positive sentiment as the FTSE 100 index gained 30 points. The benchmark index soared to its highest level since August 15 before having a slight pullback. Despite a bullish sentiment in the market, BT shares remain in a downtrend and are changing hands 0.3% below their previous close.
While the exact cause of the downtrend is not yet known, there could be a few possible reasons. BT share price has been in a tailspin since the exit of its CEO, Jansen Philip. Allison Kirky has been announced as the new CEO, but she is yet to take charge.
According to the reports, Jansen will remain in charge till January 2024. It seems like the investors are not happy over the change in leadership, which triggered a sell-off. Since May 2023, BT stock has had 4 consecutive red months. The shares closed in August with a 5.25% loss.
LON: BT.A is currently 3.75% up from its August lows. I predicted this bounce in my previous forecasts, but the bulls are still lacking momentum. There is still a chance for the price price to head towards 118.55p to fill the gap, which is visible in the following chart.
For the long-term BT share price forecast to flip bullish, bulls need to reclaim the 200 MA on the daily chart. This key moving average currently lies at 132.37, almost 15% above the current price. Before this level, the price may also face strong resistance from the 128p level.
You are also welcome to follow me on Twitter, where I’ll keep sharing my updated outlook on BT and my personal trades on the UK shares.
This post was last modified on Sep 04, 2023, 12:55 BST 12:55