Phone with logo on the screen. Editorial shot
The BT share price surged yesterday as investors reacted to the latest 5G auction. The stock jumped to 153p, which was 27% above the February low of 120p. The share prices of other telecommunication companies like Vodafone and TalkTalk also rallied.
What happened: BT Group has been in the headlines recently. Last week, the company made headlines when its workers announced that they would vote for a national strike. Such action would have significant challenges for the company.
Yesterday, the BT share price rallied after the company avoided the hefty 5G airwaves. Documents revealed that EE, a company owned by BT, spent about 452 million pounds on spectrum. That was substantially lower than the 824 million pounds that analysts were expecting. The same was true for companies like O2 and Vodafone.
This amount was also substantially lower than what companies spent to acquire the 3G spectrum. At the time, the biggest companies spent more than 22.5 billion pounds on this spectrum. The firm is planning a 12 billion pound upgrade to its broadband service.
Turning to the four-hour chart, we see that the BT share price double bottom pattern at 125p between February and March. Since then, the price has surged by more than 25%. And yesterday, it managed to move above the previous top at 147p. While not perfect, this pattern seemed like a cup and handle pattern. It remains above the 25-day and 15-day exponential moving averages (EMA).
Therefore, while a short-term pullback is likely, the overall trend remains bullish. This means that it will likely keep rising as bulls target the next key level at 170p.
