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 showed a strong surge on Thursday as most of the UK stocks turned green. At the time of writing, the shares of BT plc were up 3.25%. This positive price action comes after five consecutive days of downtrend which started after a rejection from the 138.5p level.
Technical analysis shows that the price is hovering within a very critical zone and the next few days are going to be very critical for the mid-term outlook of the stock. The recent correction can be attributed to a potential ban on inflation-linked price hikes by the UK telecom operators.
At press time, BT shares were changing hands at 130p which was well below the weekly highs of 133.4p. However, the outlook is looking very bullish due to a breakout above a major resistance level. This suggests that the current discount could be a decent buying opportunity.
The positive sentiment in the UK equities comes despite the latest hawkish remarks from the Bank of England (BOE). While the central bank kept the rates constant once again, it vowed to keep them high for a long time.
Nevertheless, the FTSE 100 index soared to its fresh 3-month highs and stood at 7,678 after a correction from the daily highs of 7,724 points.
Analyzing the daily chart of LON: BT.A we can identify a breakout above the 128p resistance level. However, the neckline of the head and shoulder pattern which lies around 133p is still acting as a huge resistance that needs to be reclaimed to unlock further upside.
Therefore, bulls need to hold the 128p support to keep BT share price forecast bullish. A breakout above 133p resistance might pave way for a retest of the 150p level which is the next major resistance as visible on the following chart.
This post was last modified on Dec 14, 2023, 13:27 GMT 13:27