Why BT's Share Price Is At Risk

On February 16th, 2018, there was a close-up view of the BT Tower in London. The BT Tower is a historic landmark in the UK.

BT's stock price had a huge drop in May 2023, but it is recovering now. However, its growth seems to be slowing down after a strong first quarter. Experts say that the stock is currently at a crucial point and a decline could be very harsh.

BT shares went up at the beginning of last week, but ended with a big drop on Friday. On Monday, the shares went up by 1.95%. Right now, the shares are selling for 146.4p. The FTSE 100 index went up 35 points.

Openreach, Of BT Group, Approved By Regulator

BT Group plc recently received approval from Ofcom for Openreach's pricing offer on full-fiber broadband. The regulator hesitated its decision due to concerns from competitors. The company also reported decreased pre-tax profit in its earnings report for March 2023.

After the report, BT's share price went down a lot but then went back up. Their revenue was more than expected at GBP 20.68 billion but it was still less than last year's GBP 20.85 billion.

Resistance Level Tested: BT's Share Price

In the LON: BT.A chart, 148p is a crucial level. It's been resistant since September 2022. Now, the price is below it again. Because of the bad earnings report and news of layoffs, the level is now even more resistant.

I think BT's share price will get really bad if it can't go past 148p. If this happens, the price could go down to 134p, which is an important support level near the 200-day moving average. The price already filled a gap that happened on the day of the earnings report.

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