BT share price edged up on Monday, gaining 0.6 percent to trade at GBX 145.05. The stock has struggled for momentum in recent days and ended the last two weeks in losses. The company’s growth has been stifled by a high debt burden, driven by its aggressive capital expenditure on 5G and fibre network expansion. However, its cost-cutting measures have proven fruitful, as it saved £3 billion a year ahead of schedule.
The UK telecommunications giant has seen its valuation grow by 16 percent year-to-date, but its recent momentum in the stock market signals bearish takeover. At its current price BT Group (LSE: BT.A) is below the 20 Exponential Moving Average (EMA), which stands at GBX 145.33 on the daily chart as of this writing.
BT share price last week got rejected at the GBX 147.00 mark, making it a key resistance level this week. The current share price is about 5.4 percent below the year-to-date high of GBX 152.20, and sustained gains this week could trigger a potential rally.
BT Group CEO Allison Kirby made major changes in its Strategy, Changes and Digital units in September, and this could impact its growth. BT will announce its next quarterly earnings in early November, the third earnings release under Kirby, who took over the reins in February.
On the 30-minute chart below, the momentum on BT share price signals bullish control. The buyers will likely stay in control if they keep the action above 144.25. That could see the stock encounter the first resistance at 145.25, but a stronger momentum could enable a break above that level to test the next barrier at 146.35.
On the other hand, a move below 144.25 will signal the onset of bearish control. If that happens, initial support could come at 143.45. However, if the sellers extend their control, it could enable a break below that level, invalidating the upside narrative. Meanwhile, the downside could extend to test the next support at 142.70.
This post was last modified on Oct 14, 2024, 09:46 BST 09:46