Why I don't trust BT Group's share price chart
After a recent break above 160p failed to hold, independent analyst Alistair Strang investigates the odds of a sustainable rally.
5th February 2025 07:40
BT Group (LSE:BT.A) has a share price which hasn't been faring well in recent years. And we don't entirely trust the chart.
While it shows the price as breaking free of the downtrend since 2016, there is a panic level at 117p, a point below which things risk going horrible wrong, giving an initial drop target of just 52p with our secondary, if broken, an impossible -52p.
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On the basis the market still adhere to the illusion of happier times ahead for BT, their share price needs to exceed 162p to hopefully trigger recovery to an initial 189p with our secondary, if beaten, at an impressive 219p.
If it gets there, we shall need take a hard look at their future due to an eventual 293p being seen as exerting a gravitic and unlikely influence.
In summary, despite our foul outlook, according to the charts BT still has a future. But personal experience advises caution.
Source: Trends and Targets. Past performance is not a guide to future performance.
ii Head of Editorial Lee Wild owns BT shares
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
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