Mitie (LON: MTO) share price seem to be making its way to retest the 109p resistance level, which was the June 2018 high. The stock of the British outsourcing company currently stands 2.77% below the 109p level. Mite shares are changing hands at 106p, up 0.19% till press time.
On 21st September, BOE is expected to raise interest rates by 25bps. The markets are expecting the tightening cycle to end after this. Due to these expectations, UK equities started to boom as bullish sentiment surrounded the market. The benchmark FTSE 100 index soared to its highest level since March 2023.
The British energy services company Mitie Group has acquired JCA Engineering, which is a project designer and contractor company operating in the UK. Mitie Group will pay £21 million upfront and will pay the rest of £10.5 million over the course of three years.
In other news, Mitie Defense also struck a deal with the UK Armed Forces. The deal, worth over £150 million, includes facilities for military accommodation for UK forces in Germany. It will be managed by the Mitie Defense unit. This deal will be in effect from Spring 2024 and is expected to last for 7 years. The Mitie Group share price is up 38.72% from its yearly low.
The chart for LON: MTO shows the price respecting the upward trendline since March 2022. The price retested the trendline for support again at the end of August 2023. It was soon followed by a 14.5% bounce.
The Mitie share price forecast may remain bullish if the bulls gain strength above the June 2018 high of 109p. In this case, a 49% rally toward the 162p resistance level will be on the cards. However, a rejection from the current levels may open doors for a retest of the August lows of 91p.
You are also welcome to follow me on Twitter, where I’ll keep sharing my updated outlook on LON: MTO and my personal trades on the UK shares.
This post was last modified on Sep 15, 2023, 15:30 BST 15:30