The BT share price made a strong comeback in the first quarter. After dropping to 120p in February, it rallied by more than 30% to the year-to-date high of 157p. Year-to-date, the stock has jumped by more than 14%.
What happened: BT Group has been in the spotlight lately. The firm is facing its first major strike as workers protest poor working conditions and the closure of some plants. The employees have rejected the firm’s short-term offer, which includes a 1,500 pounds bonus. The deal would have cost the firm $81 million.
BT also unveiled management changes, as the long-serving Chairman announced his plans to retire. There have been talks about a rift between the outgoing chairman and CEO about the future of the firm. Also, BT share price rallied after spending less money in its 5G upgrade spectrum. BT will publish its fourth-quarter and full-year earnings on May 14th.
So, what next for BT Group in the second quarter?
BT share price forecast
The daily chart shows that the BT stock moved above the important resistance at 147.90 on May 17. The shares concluded the formation of its cup and handle pattern and is now about 5% above the upper side of the cup. It has also moved above the 25-day and 15-day exponential moving averages.
Therefore, in my view, the upward trend will remain as investors target the next key resistance at 165p. However, we should not rule-out substantial resistance ahead of the upcoming strike. This could see it move to the support at 140p.
BT stock chart