BT (LON: BT.A) share price remains in the downtrend as the UK shares continue to face headwinds from the high-interest rates in the country. The benchmark FTSE 100 index has been tanking since last week. The latest analysis suggests there could be more downside for UK equities in the coming weeks.
On Monday, the FTSE 100 index fell by 30 points during the initial hours of trading. However, the index recovered in the afternoon and went above its opening level. BT shares turned red for the fourth consecutive day. The shares of the telecom giant closed last week with a 6.57% loss.
BT Secures Major Army Contract
As per the latest BT plc news, the British broadband service provider has secured a major army contract. According to the reports, the multi-million-pound contract covers more than 150 sites across the UK and will be valid for 5 years.
In other news, Redburn recently downgraded BT plc from ‘buy’ to ‘neutral’. This suggests that the institutional interest in the telecom giant may be on a decline. Recently, BOE hiked the interest rates in the country to 5%, which is the highest in the last 15 years.
BT Share Price Head Towards 118p
As described in my last LON: BT.A analysis, the shares are heading towards a retest of 118p. This price target got validated due to a breakdown below the 135p support level. This will also mark a retest of the February lows which are 6.3% below the current price.
BT share price forecast is looking very bearish due to the formation of the head & shoulders pattern, which is shown in the chart below. This bearish pattern has the potential to tank the price to 108p in the coming weeks. However, there is a very high likelihood of a strong bounce before the price tags this level.
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.
