LONDON, UK - FEBRUARY 16TH 2018: A close-up view of the historic BT Tower in London, UK, on 16th February 2018.
The BT share price had a relatively muted September. The stock managed to drop from a September high of 172.40p to a low of 152p. It is now trading at 162p, which is about 6% above the lowest level during the month.
BT has a relatively calm month in September. The biggest announcement was a report by the Financial Times that hinted that the company was in talks with DAZN. DAZN is a relatively new media streaming company that wants to acquire BT Sports.
The report did not mention the total amount being considered. It also did not mention the state of the talks and whether an outsider, like Rupert Murdoch, will also attempt to buy the company’s broadcasting division.
The BT share price also reacted mildly to an announcement that an anti-trust case against the company will go on. The company has been accused of mispricing about 2.3 million customers of its fibre product.
If the company loses, it could be forced to pay about 500 pounds to these customers. This lawsuit interferes with the company’s management at a time when they are investing more than $12 billion in its Openreach product.
Meanwhile, in September, Ofcom, the telecommunication regulator said that it will not take action on the company’s pricing of its fibre-to-the-premise pricing that will start on October 1.
Another major development is from Patrick Drahi, the company’s biggest shareholder. Investors will be paying a close attention to his next actions with the company. He seems to be in a deal-making mood. On Thursday, he proposed to buy Eutelsat for about $2.4 billion.
The four-hour chart shows that the BT share price has been in a relatively weak bullish trend in the past few weeks. It has moved from a low of 153.70p to 162p. Still, it remains significantly below the July high of more than 206p. The stock has also formed a rising wedge pattern, which is usually a bearish signal.
Therefore, there is a likelihood that the stock will break out lower in October. If this happens, the next key support level to watch will be at 150p.