BT share price is rising today after falling in the past few days. The stock is trading at 134p, which is 8.8% below last week’s high of 148.20p. Similarly, the Vodafone share price has jumped by more than 1.2% while TalkTalk has risen by 0.80%.
BT News: BT Group has been under intense pressure in the past one week after the company’s Openreach employees voted to go on strike. Since then, the stock has nosedived by about 8%. The employees are complaining about low pay from the British telecommunication company. This matters because the employees are those tasked with diverting fiber to new developments.
BT share price is rising today after the company announced that it will employ about 400 apprentices and graduates later this year. The new members will mostly be in the engineering, customer science and cybersecurity fields. Investors view this as a sign of confidence by the management.
Looking forward, BT will announce its third-quarter earnings on Thursday next week. In general, analysts expect the company to have relatively strong results, boosted by its Openreach business. In general, they expect that the third-quarter revenue will decline by 5.7% to 5.4 billion pounds. For the 2020/21 year, they expect the results to show that the revenue fell by 6.2% to 21.4 billion pounds. A summary of these estimates is shown below.
BT Group earnings forecast
BT share price forecast
On the daily chart, we see that the BT share price made a bullish breakout in November after spending a few months in consolidation. After soaring by about 40%, the shares found a strong resistance. This happened close to the 152p target I had written about a few weeks ago.
And in the past few weeks, the stock has formed an upward channel. Today, it is a few points below this channel.
Therefore, in the near term, I suspect that the shares will bounce back as bulls attempt to test the upper side of the channel at 147p. However, this prediction will be invalidated if the price moves below 120p.
BT Share Price Chart