BT (LON: BT.A) share price is retesting the upward trendline on its daily chart. This retest is very critical as the investors await the earnings report on May 18. After outperforming most of the FTSE 100 companies, the shares are currently experiencing a pullback.
On Monday, BT shares opened higher, but the daily candle turned red as the day progressed. Nevertheless, the stock was still trading 0.52% above its previous close till press time. The FTSE 100 index was also up 0.40% as the benchmark index gained 30 points on the first trading session of the week.
I expect volatility in LON: BT.A in the coming days as the market awaits the release of BT plc’s financial results. The earnings report for the period ending in March 2023 will be released on May 18. Due to the soaring inflation in Europe in general and the UK in particular, telecom companies had to hike their prices significantly in the past few months.
Therefore, the upcoming BT plc financials will shed light on how the price hikes impacted the company’s profitability. The investment giant, JP Morgan, is still sticking to its 200p BP share price target for 2023.
The following chart reveals that LON: BT.A is currently retesting the upward trendline on the daily timeframe. The price has been respecting this trendline since January 2023. This, together with a bullish divergence on the Money Flow Index indicator, suggests that the price may get a strong bounce from here.
If the upcoming earnings report turns out to be below expectations, then BT shares may drop below the trendline. However, the BT share price forecast will still remain bullish as long as the price holds a 136.5p level.
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 May 15, 2023, 14:56 BST 14:56