BT (LON: BT.A) share price has reversed after a massive upward rally as the company reported its earnings last week. The shares of the UK’s telecom giant tanked 4.89% in its worst week since March 2023. The latest analysis reveals that the bulls need to break above 148p soon, or things may turn extremely bearish.
After a sharp decline during the mid of last week, BT shares had a strong rebound. The bounce continued on Monday as the price retested the 148p level. However, the sellers had taken the price back to 145.75p till the time of writing.
BT Group Reports Disappointing Pre-Tax Profit
The biggest headwind for the shares of BT Group plc was a massive decline in its pre-tax profits in the year FY23. The earnings report for the period ending on March 2023 revealed that the telecom company’s pre-tax profit dropped to GBP 1.73 billion from the last year’s GBP 1.96 billion.
Consequently, BT share price plummeted to its lowest level since February 15. While the revenue of GBP 20.68 billion was more than the company-provided consensus estimate of GBP 20.52 billion, it was still lower than the FY2022 revenue of GBP 20.85 billion.
BT Share Price May Face A Rejection From 148p
The latest analysis of LON: BT.A reveals that 148p is a very critical level on the chart. This level acted as a major resistance before the price broke above it in April. This resulted in a rally toward its YTD high of 161.4p. The disappointing earnings report and the announcement of massive layoffs by 2030 have sent the price below this key level once again.
BT share price forecast will flip extremely bearish if the price gains acceptance below 134.5p. Therefore, the bulls need to reclaim this level soon. The price has already filled the gap which was created after a massive gap-down opening last Thursday.
In the meantime, I’ll keep sharing updated outlook on LON: BT.A in my free Telegram group that you’re welcome to join.