BT (LON: BT.A) share price is at a very critical level as it is retesting a major resistance level on its chart. The shares of one of the biggest British telecom operators have shown a great recovery from their March lows. This means a more than 7% price increase in just two weeks.
BT share price UK started this week with a positive price action on Monday. The stock closed after gaining 0.96% during the first trading session of the week. However, all the gains were wiped off on Tuesday as the shares dropped by 1.4%. At press time, BT Group shares were trading at 145.2p.
BT Group plc has accelerated the deployment of its fibre network in the UK. The company has a clear edge over its competitors, also known as alt nets which are also spending billions of pounds on the upgrade. Just recently, the company’s plans to launch Equinox 2 had to miss their schedule due to the lack of approval from Ofcom.
The decision on the wholesale pricing of the Equinox 2 was delayed by the regulator after multiple complaints by BT Group’s competitors. In other news, Britain’s telecom regulator is currently investigating the broadband providers for failing to implement a new switching process.
Technical analysis of the LON: BT.A chart shows that the shares are retesting one of the major resistances. As indicated in our last week’s analysis, the 147p resistance has resulted in multiple rejections in the past. This level has become significant due to the presence of the September 2022 high in the same region. A reclaim of this level can make BT share price forecast extremely bullish.
Considering the current state of the chart, it is better to wait for a breakout or rejection from the 147p level. Within the next few days, I expect a big volatile move, whose direction will be determined by the ongoing retest.
This post was last modified on Apr 04, 2023, 14:30 BST 14:30