- Summary:
- Following last week’s 5 per cent price gain in the markets, BT share price continues to show resilience in the early hours of the session.
Following last week’s 5 per cent price gain in the markets, BT share price continues to show strong resilience in the early hours of today’s trading session, surging by almost 3. Today is also the third consecutive trading session in which we have seen BT share price continue to recover after falling to price lows of 114p on the week ending November 4th.
The continued recovery comes amidst bullish talks from the company’s chief executive, Phillip Jansen, who exuded confidence that their major projects, such as the Openreach fast-fibre network, were poised to be a success and contribute positively to BT.
However, the rising cost of energy, which is estimated to cost the company an extra £200 million year over year, has been seen by many experts as a possible hindrance to the BT share price growth for the long term. The company has also seen its expenditure jump from £4.8 billion to £5 billion for the financial year, affecting BT’s cash flow.
BT Share Price Forecast
Looking at the chart below, it is clear that BT’s share price is in a strong bullish trend which follows the company’s recent bearish trend that saw its prices dropping to 114p. The chart also indicates that the current bullish trend may be long-term.
Therefore, for the next few trading sessions, I expect BT’s share price continue trading upwards. There is a high likelihood that we might see prices hitting the 134p supply level and possibly trading above it. My bullish analysis is also supported by the improving economy, which will likely trigger the rate of inflation coming down, and the company’s expenditure reduction.
Rumours of cost-cutting measures that include cutting down the workforce are also likely to see BT’s share price improving. However, a drop below the 114p price level will invalidate my analysis. It will also indicate BT’s share price has entered a bearish trend.
BT Daily Chart
