BT (LON: BT.A) share price is in the midst of a recovery after consolidating around a key support area. The shares of the British telecom giant are changing hands at 114p on Wednesday after rising by 1.42%. However, a bullish reversal signal is still a far cry as the price is a mere 2.3% up from the yearly lows.
After a more than 41% rally in 2023, BT shares started to tumble in April 2023. The shares peaked at 161.40p and have been in a downtrend since then. During this time, the stock has plummeted by more than 29%. I predicted this move months ago when the shares broke below the head & shoulders pattern.
BT plc EBITDA Increases By 5%
According to the BT Chief Executive, Openreach Fibre has now reached 44% of the way through its full fibre-build. He also said that customer demand is also on the rise, and the network take-up rate has hit 32%. However, BT share price tells another story.
In other news, there’s a 4% uptick in the firm’s adjusted revenue in the quarter ending on June 30. The adjusted profit for the quarter remained at £5.2 billion. Furthermore, the adjusted profit (EBITDA) remained £2 billion after a 5% increase.
BT Share Price Rebounds From Yearly Lows
If you’ve been reading my previous LON: BT.A forecasts, you know that I accurately predicted the retest of the 110p level when shares were trading above 135p. I also forecasted a strong bounce from this level due to the presence of a strong demand zone. If the bulls gain momentum, the first target appears to be 118p to fill the price gap.
For BT share price forecast to flip bullish, it needs to break above the 128p level. Another major resistance is the neckline of the head & shoulders pattern, which currently lies at 134p. This would be the most critical retest for the long-term outlook of the stock.
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