The BT share price is in the spotlight today as investors continue focusing on the tussle between management and the union. The stock ended the day at 146p, which was about 6% below last week’s high of 155p.
BT news: BT shares jumped last week after the company – and other telcos – managed to spend less amount of money on 5G spectrum allocation. The shares have eased by about 6% as investors eye the ongoing tussle between the company and its employees, who have threatened a national strike.
In a statement yesterday, BT offered a 1,500 pounds bonus to its frontline workers. They will receive 1,000 pounds in cash and 500 in BT stock that will vest in the next three years. However, the union has stuck to its guns, calling the move a desperate move by the firm. They also called it a desperate move by the firm to buy the workers.
The new developments came a week after Ofcom, the regulator, told said that wholesale prices for fibre would not be capped. This means that the firm can go ahead and raise prices for its broadband services.
BT share price forecast
On the four-hour chart, we see that the BT share price jumped sharply last week after the positive developments by Ofcom. It reached a high of 155p, which was the highest level since February last year. By rising, the stock moved above the important resistance level at 147p, which was the previous high in January this year.
Today, the price is above the ascending trendline that connects the lowest levels this month. It is also at the same level as the 25-day and 15-day exponential moving averages (EMA). Therefore, in my view, the BT stock will continue being in an uptrend so long as it is above this trendline. Also, this consolidation can be viewed as being part of the handle section of the cup and handle formation. As such, another retest of last week’s high at 155p is possible.
BT stock chart
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Crispus on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.