BT share price is up by 0.45% today as investors boost their expectations for the new year. The shares are trading at 136p, which is slightly higher than last week’s low of 127.60p. The company has a market cap of more than £13.3 billion.
What happened: There’s no company-specific news that’s moving BT share price today. Instead, investors are reacting to the extended national lockdown in the United Kingdom. They are also positioning for the new year.
Most importantly, many investors believe that BT Group will make major changes to boost its business this year. These measures could include separating the business or even launching strategic alternatives like M&A.
As I wrote two weeks ago, BT has been mentioned as being a leading potential acquisition target. A potential acquirer would do so because of the value of its separated businesses, including the OpenReach product. Also, it has a lot of scale, serving more than 30 million customers and more than 1 million business clients. Still, the company has so far not been approached.
BT Group Share Price Forecast
On the daily chart, we see that BT share price has been wavering in recent days. In the past few weeks, it has been moving sideways. It has formed a channel of between 127.35p and 141.45p. As a result, it has also remained above the 25-day and 50-day exponential moving averages and along the 38.2% Fibonacci retracement level.
Therefore, in the near term, the shares will possibly break-out higher as bulls aim for the 50% retracement at 152p, which is 15% above the current price.
BT share price chart