BT (LON: BT.A) share price is behaving exactly as mentioned in our previous forecast. The shares have surged to their new yearly highs after breaking the key psychological barrier of 150p. Our analysis reveals that there is still a lot more upside, and the rally could be just getting started.
Shares of BT Group PLC have been rising for four consecutive weeks. After closing last week with 4.99% gains, the shares are up 1.66% on Monday once again. The benchmark FTSE 100 Index turned negative today after showing minor gains at the start of the trading session. Nevertheless, BT shares continued to rally for the 7th straight day in a row.
BT Group PLC has outperformed major UK shares in 2023. The Q1 stats show that the LON: BT.A was the 3rd best-performing FTSE 100 stock. The shares generated 22.6% returns in the first three months of the year and hence contributed to the surge of the benchmark Index. The recent cost cuts and prioritizing the network upgrade have been the major catalysts behind this surge.
As BT Group upgrades its fibre network across the UK, things have become very tough for its competitors. Some of these competitors, known as ‘altnets’ have accused the telecom giant of choking the competition with its latest pricing. Due to these concerns, Offcom had to delay the approval of its Equinox 2 wholesale fibre pricing.
The significance of the 150p level was discussed in detail in our last week’s BT share price forecast. Since then, the shares have reclaimed this key psychological level after breaking above their 147p technical resistance. This has given bulls enough momentum to aim further upside.
Considering the ongoing rally and its momentum, it is very likely that the stock will surge to 194p in the coming weeks. This is because there is no major resistance on the chart before this level. The broader market sentiment in the UK equities has to stay positive for this forecast to be fulfilled. A breakdown below $150p will invalidate this forecast.
In the meantime, I’ll keep sharing updated outlook on LON: BT.A in my free Telegram group that you’re welcome to join.
This post was last modified on %s = human-readable time difference 14:27