The BT share price looks set to mark a 7th consecutive losing day after the price action dipped by 0.61%. The continued selling on the stock comes as a section of its staff plan to stage an additional four-day strike over pay in October.
The UK telecom/internet provider has recently seen its stock take a nosedive after the workers’ union staged a series of industrial actions after disagreeing with the company’s management on a pay increase. The October strike is planned by the Communication Workers Union (CWU), a major trade union in the telecoms sector.
This strike will see 40,000 workers walk off the job on the 6th, 10th, 20th and 24th of October, according to a CWU statement. The UK’s cost of living crisis arose as inflation hit 40-year highs. Inflation in the UK is projected to hit 13.3% at the end of 2022.
Many unions have pulled their workers off their jobs after employers failed to meet the steep wage increase demands. The BT Group had announced an increase of 1,500 pounds per year, amounting to a 5% increase on average and has refused to reopen talks to review this benchmark.
The unions see this increase as a drop in the ocean, considering the UK’s current annual inflation rate. Investors continue to dump the company’s stocks, leaving the BT share price vulnerable to a further push lower.
BT Group Share Price
Monday’s intraday violation of the 128.70 support level was followed by a return move which was rejected on Tuesday at this price mark. This effectively converts this price level from support to new resistance, from which the bears have initiated a further push to the south.
The decline below the 128.70 support level has paved the way for the bears to make a run toward the 122.25 support (11 February 2021 low). The 30 November 2021 low forms an additional pivot at 116.50, as does the 16 September 2020 low that constitutes the 112.20 support level.
Further price deterioration allows the bears to create another harvest point at the 98.70 price mark (31 July 2020 and 29 October 2020 lows). On the other hand, the bulls require a bounce on the 122.25 support to stop the downtrend and create an upside retracement.
This retracement bounce must breach the barriers at 128.70, 136.20 (20 September low) and 144.40 (2 September low) to create a pathway toward the 153.85 resistance (4 August low and 30 August high). Above this level, 161.95 (8-10 August highs) constitutes another barrier to the north. The bulls must uncap this barrier for 170.85 (9 March high) to enter the mix as an additional northbound target.
BT Group: Daily Chart
