LONDON, UK - FEBRUARY 16TH 2018: A close-up view of the historic BT Tower in London, UK, on 16th February 2018.
BT (LON: BT.A) share price is looking very strong as the stock has rebounded after a brief pullback. The shares of BT Group plc have been on a bull run since the start of the year despite a sideways FTSE 100 Index. Consequently, the Biriths telecom vendor has become one of the best-performing FTSE 100 companies.
BT shares are currently 40.8% up from their yearly open. This makes LON: BT.A one of the best-performing blue-chip stocks in the UK. The shares hit their yearly high in April 2023 and closed the month by posting 8.91% gains. On Tuesday, the stock opened lower but turned green once again.
The shares of BT Group plc have once again outperformed FTSE 100 index. The benchmark index of UK equities fell by 8 points during the first trading session of the week. However, the BT share price remained green and was up 0.35% for the day. Most of the news about the telecom giant has been quite positive and can be a reason behind the positive price action.
BT’s earnings report for Q1 is scheduled to be released on May 18. Due to this reason, the shares are expected to remain volatile this month. Recently, the company received a £350 million contract from Scotland to make the public sector connectivity future-proof.
After a strong rally and a strong buying volume, LON: BT.A chart appears to be overextended. This means that there could be a significant pullback waiting around the corner. The RSI on the daily chart is already retracing after hitting 94 in April 2023.
The most likely scenario could be the price-making new yearly highs and the RSI making lower highs. This will create a bearish divergence on the chart, which may act as a catalyst for a pullback. However, this BT share price forecast may go completely out the window if the upcoming earnings beat the market expectations.
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 02, 2023, 14:15 BST 14:15