The BT share price is up 3.21% this Monday, making it one of the best performers on the FTSE 100 index. The performance of the stock puts it at the number three position on the gainers’ chart of the FTSE 100.
The uptick comes as investors attempt to shrug off the negative sentiment that beset the stock last week following a vote by the workers’ union to move ahead with industrial action over pay. The company issued a statement in response to the vote by the Communication Workers Union, declaring that it awarded its highest pay increase in 20 years amid a “once-in-a-generation investment programme” to upgrade the UK’s mobile and broadband networks.
The BT Group offered a pay rise that would see its lowest company earners receive an 8% increase. The CWU is yet to communicate to the company when the strike action would commence. This has allowed investors to aim for quick profits by buying at recent lows of 179.60 and 183.30.
BT Group Share Price Forecast
The double bounce off the 200-day moving average forms a potential double bottom, with the price action now testing the resistance zone formed by 191.15 acting as the floor and 193.90, which serves as the ceiling of this zone. A break of this zone completes the pattern, setting up a potential measured move that targets 206.65 as the completion point.
This move must degrade the resistance at the 200.85 resistance (16 February 2022 high) to achieve completion. On the other hand, rejection at the resistance zone could initiate a pullback that locates the 183.85 pivot. Below this level, 180.60 forms an additional support target (1 April and 18 May lows) before the 200-day moving average re-emerges as a dynamic support level that intersects the 175.55 price mark (18 March 2022 low).
A breakdown of this combined support invalidates the pattern and points toward the 170.85 support. Otherwise, a fresh bounce on the moving average forms a potential triple bottom that must complete the previously set upside objectives to attain completion.