BT Share Price May Drop To 110p Again – Here’s Why
LONDON, UK - FEBRUARY 16TH 2018: A close-up view of the historic BT Tower in London, UK, on 16th February 2018.
BT (LON: BT.A) share price saw a strong rejection from the 119p level at the end of last week. This rejection was fueled by a 113.94 million volume spike. The shares for the telecommunication company are showing recovery on Monday. BT shares are standing at 118p, up 0.85% till press time.
Despite the shares of BT showing some gains, bearish sentiment still surrounds the UK equities. The FTSE 100 index faces strong headwinds after breaching 7,700 points level. The index is down 63 points on Monday. The investors are cautious as they await the Bank Of England‘s policy decision on Thursday.
What Is Happening With BT Shares?
Earlier in August, BT announced the appointment of Alison Kirkby as its CEO. The new CEO made headlines after she endorsed the multibillion-pound expenditure into expanding the fiber network and the 5g network across the UK.
In other news, BT and Johnsons Control partnered up to help businesses around the world to manage energy usage in the workplace. BT also mentioned how this partnership will fulfill its commitment to reduce its 60 million tonnes of CO2 emissions by 2030. BT share price is currently trading 27% below its yearly high.
BT Share Price Faces Rejection From 119p
The LON: BT.A chart shows that the price rallied by 6% last week as UK stocks experienced some bullish sentiment. However, the price failed to break above 119p, which was the previous support level. The shares are also trading 11% below the 200 MA, which lies at 132p.
According to the latest BT share price forecast, the outlook has turned bearish after the strong rejection from the 119p resistance level. Bears can expect a 6.9% pullback towards the 111p support level in the coming days. However, the bulls will come into play if the price finds strength above 119p. In this case, I expect a retest of the 128p resistance level.
You are also welcome to follow me on Twitter, where I predicted the ongoing slump in BT shares 3 months ago.