BT share price is rallying: Does it have more room to run?
BT Group (LON: BT.A) share price has made a strong recovery in the past few months as investors buy the dip and as UK stocks shine. The stock jumped to a high of 146.85p, the highest point since September 2022. It has jumped by more than 33% from the lowest level this year.
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BT Group stock has been in a strong bullish trend in the past few months as investors focus on the company’s turnaround strategy. The most important part of this strategy was the decision to boost its broadband and mobile rates.
In a statement, the company said that it will hike prices by about 14%, in line with the consumer price index (CPI) plus 3.9%. In all, customers will pay about 58 pounds more per year. Therefore, the company is expected to see higher revenues and profits in the coming months.
The most recent results showed that the company’s revenue slipped by 1% to £15.5 billion in the nine months to December. Its profit before tax also dropped by 15% to £1.3 billion while the profit before tax jumped to £1.32 billion.
The other important telecom news in the industry was the upcoming merger of Three and Vodafone. The combination will create the second-biggest telecommunication company. Vodafone and Three are now the third and fourth networks in the country. Still, the impact of this merge on BT will be minimal.
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Is it safe to buy BT stock? The daily chart shows that the BT stock price has been in a strong bullish trend in the past few weeks. Along the way, the shares have formed an ascending channel that is shown in black. This price is along the middle line of the channel.
The stock has managed to flip the resistance point at 134.55p into a support level. It has moved above the 50-day and 200-day moving averages. The shares have also jumped above the 38.2% Fibonacci Retracement level while the Relative Strength Index (RSI) has moved above the neutral point of 50.
Therefore, BT share price will likely continue rising as buyers target the next key resistance point at 155.85p. This price is at the 50% Fibonacci Retracement level. The stop-loss of this pattern is at 134.55p.