BT (LON: BT.A) share price has failed to bounce despite a very steep fall in the past few weeks. The stock of the British telecom giant is behaving exactly as predicted in my last week’s forecast. The latest analysis shows that there is still more downside for the stock before a potential rebound.
On Monday, the Uk shares turned green as the FTSE 100 index opened higher. However, most of the gains were lost as the US markets opened. BT shares were up 0.65% till press time and changed hands at 123p. On a higher timeframe, the stock remains 23.8% down from its yearly peak.
Ofcom Investigates BT On Emergency Call Disruption
BP plc has once again offended the telecom regulator Ofcom. The British regulator has launched an investigation against one of the biggest telecom operators in the UK for the country-wide disruption in emergency call services on June 25.
The investigation aims to establish the facts surrounding the incident as well as to determine if BT has failed to comply with its regulatory obligations. BT was also recently accused by its rivals of trying to create its monopoly by killing the competition with its pricing. However, It is not confirmed if the news has affected the BT share price.
BT Share Price On Track For Key Retest
In my last LON: BT.A analysis, I mentioned the price target of 118p. Just like my previous price prediction of 134p, this target is also very close to being met. Instead of relying on the ratings of institutions, my BT share price forecast was purely based on technical analysis. The price action was pointing towards both of these targets.
To be very honest, I didn’t expect such a steep decline. Due to the velocity of the current drop, I expect a strong bounce from the 118p-120p region in the coming days. However, an acceptance below 118p may tank the price to 111p, where lies the next major support. This price target is also close to the technical target of the recent breakdown from the head & shoulders pattern.
In the meantime, I’ll keep sharing updated BT stock price forecast and my personal trades on my Twitter where you are welcome to follow me.
