LONDON, UK - FEBRUARY 16TH 2018: A close-up view of the historic BT Tower in London, UK, on 16th February 2018.
BT share price soared 6.25% above its last week’s close on the release of its strong half-yearly earnings report. The British telecom company reported a 29% increase in its pre-tax profit which resulted in a strong volatility in its shares on Thursday. The shares closed the market at 117.5p and were up 5.58% from yesterday’s close.
On Thursday, the Bank of England decided to maintain the 5.25% interest rate amid the low PMI figures and softening labor market. This news coupled with a positive earnings report by BT lifted market sentiment as the FTSE 100 index closed 1.4% higher on Thursday.
BT was the talk of the day after the British telecommunication company reported £10.4 billion as its revenue for the first 6 months. The EBITDA also rose from £3.87 billion to £4.09 billion as the management attributed the strong cost-cutting and higher consumer demand to the improved half-yearly results.
In other news, BT is looking to diversify its operations as it considers selling kitchen appliances such as smart fridges, kettles, and coffee machines. The telecom company is looking to start selling these appliances next year and is also considering expanding into gaming, insurance, and subscription services.
It is clear from the following LON: BT.A chart that the price attempted to break above the 119p resistance level during its volatile price action on Thursday. However, the bulls failed to push the price above the key level and it closed at 117.45 pence.
The chart below also shows a key demand zone of 111p-112p which the price has retested multiple times for support since August. The demand in this zone has resulted in a strong bounce which might make BT share price outlook extremely bullish.
However, the stock still needs to break above 119p. A reclaim of this level will pave the way for another bullish leg till 128p which is the next major resistance.
This post was last modified on Nov 02, 2023, 18:54 GMT 18:54