Despite this week’s surge in global equities, BT share price continues to experience a major sell-off. The stock is currently down 2.88% on the weekly timeframe and the outlook is not looking quite bullish.
Shares of one of the UK’s largest telecom service providers lost 1.26% on Thursday as the price retested key support. The outcome of this retest would define the price action in the coming months. The ongoing bearish price action can be attributed to the weakness in the FTSE 100 index.
While BT plc’s pension deficit has fallen to GBP 3.7 billion, it is the firm’s piling up debt that is the major cause of concern among the investors. The telecom giant’s debt had increased by GBP647 million over the year, putting the overall debt at around GBP20 billion.
Analysis of LON: BT.A higher timeframe reveals a retest of the 119p level which I forecasted a few weeks ago. The outlook on BT shares will flip very bearish of bulls fail to turn this previous resistance into a support level.
