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BT Share Price Gains Momentum Above the 50-Day Moving Average

BT trades higher today as investors sentiment improves across the board while the FTSE 100 is 0.60% higher at 6,280. BT started a correction in mid-December before the coronavirus outbreak.

BT launched a new transformation plan to improve and modernize the operations and product line. Another challenge is moving its customers onto the latest 5G and fibre broadband networks. The project involves massive spending and investing of £1.3bn, over the next five years. The company believes that the plan will reduce costs by £1 billion per year, starting in 2023.

BT full-year revenue from consumers dropped 2% to £10.4bn, while in the fourth quarter revenues were down 4%. The lower revenues attributed to a decline in voice-only customers and rising regulation costs. The profits fell 5% to £2.4bn. BT guidance sees lower Consumer revenue next year due to the lack of live sports events amid the coronavirus lockdown.

The BT Group revenue fell 5% to £6.1bn while the fourth-quarter revenue fell 3%, as customers used less of BT’s fixed phone lines. The group’s profits fell 3% to £2.0bn. The earnings per share reported at 23.50, with an EPS growth of 11, and a P/E ratio at 5.

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BT Share Price Technical Analysis

BT is 1.82% higher at 119.75 as the stock regains positive momentum above the 50-day moving average. The stock trades higher for the third consecutive session capitalizing the recent rally in global stocks. BT stock hit multiyear lows on May amid the coronavirus crisis and rising operational costs. The technical picture for BT has improved for the short term, but the long term outlook remains bearish below the 100-day moving average. 

On the upside, intraday resistance for BT stock stands at 121.00 the daily high. A break above 121.00 would open the way for a test of the 100-day moving average at 128.76. A break above 128.76 might attract more buyers for the next target at 135.50 the high from March 26.

The first support level stands at 117.90 the daily low. The 50-day moving average at 116.13 would provide the next support zone. A break below 116.13 would pave the way for a move down to 110.70 the low from June 12.    

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