BT share price has been on a sustained downtrend in the second half of the year. Shareholders will be hoping for better fortunes next week following the release of the next earnings report on 3rd November. At the time of writing, the share price was marginally up, rising by 0.64% in 24 hours to register 136.05p.
Analysts paint a gloomy outlook for BT share price
According to analysts at Deutsche Bank, risks at BT are rising and not reducing. This informed their decision last week to cut their outlook for the BTC share price to 125.0p from an earlier 140.
However, BT faces a great debt burden, which could hurt its long-term performance. Key among these is a pension deficit that has hit the £8.5 billion mark. Such debt means that the corporation could be more vulnerable to market shocks and could hinder its future growth.
However, the company has got much going its way. First, BT is investing in its fibre and 5G networks. This will almost certainly cement BT’s position as the UK’s largest broadband and mobile service provider. Secondly, the company has also reached a new agreement with its main staff union, reducing the risk of industrial action. This will give it ample time to concentrate on its expansion programs.
In the near term, investors will be looking to the next earnings release in a week’s time. If the earnings beat expectations, it could boost the share price and reverse some of the months-long losses.
Technical analysis for BT share price
The BT share price has been on a prolonged bear run, with a downtrend stretching back to 24th June. The 200-EMA crossed above the 50-EMA about ten days ago, underlining the strong bearish market sentiment. The share price is currently below the 50 Fibonacci retracement level and with the RSI at 37, there’s a high chance that the price could head down to find support at 132.85p at the 38.2% retracement. Further losses beyond that point could see the support sliding down to the long-term golden cross level, which corresponds to 123.00p.
On the other hand, the RSI indicates that BT shares are nearing the oversold level. This could trigger an upturn, with the price rising to encounter the first resistance at the 50% retracement at 135p. If the buyers sustain the upward momentum, the price could rise to the second resistance at 61.8% retracement, which corresponds to 137.15p.
