BT Share Price: BT Must Clear 177.20p To Resume Its Bullish Sentiment

The BT share price has dropped nearly 9% since the start of August. It is also trading more than 22% below its highest point this year at 207.30p achieved in June. However, it has jumped more than 22% since the start of the year. The BT stock has a total market capitalization of £16.712 billion.

Price Action

BT Group Plc is a British multinational telecommunications holding company. It has operations in almost 180 countries in the world. It is the largest provider of fixed-line, broadband, and mobile services in the United Kingdom.

There are several developments linked to the slump in the BT share price. First, it was revealed that CityFibre was ser to receive a £500 million financial increase from several investors. CityFibre is a competitor to the Openreach network, a subsidiary of the BT Group Plc. However, investors are relying on Altice, a telecommunications company, to back the company.

Second, the company recently announced the addition of a new board member. Adam Crozier is expected to join BT as the chairman and independent non-executive director later this year. Crozier was the chairman of Whitbread, Kantar Group, and ASOS. He was also the non-executive director of Sony Corporation. Adam’s management takeover is expected to be a crucial turnaround for the company.

BT Share Price Analysis

Taking a closer look at the daily chart, it is crystal clear that the BT share price has been trading lower in the past two months. Along the way, it has formed what looks like a descending channel which is usually a bullish indicator.

The stock is trading below the 50-day and 100-day moving averages. It is also trading above the 200-day moving average.

Therefore, the BT share price is likely to retrace further before jumping back. The price must clear the resistance at 177.20 to correct its bearish trajectory. On the flip side, a move past the support at the 200 DMA will invalidate this view.

BT Price Chart