Where now for the BT share price as Neil Woodford buys in?

Last month, Neil Woodford ploughed cash into FTSE 100 stocks like BT in a bid to make his suspended flagship fund more liquid ahead of its reopening in December.

Neil Woodford has bought up shares in various blue-chip stocks, including Lloyds, British American Tobacco and BT, with the fund manager looking to make his suspended flagship fund more liquid ahead of its reopening in December.

Investors remain trapped in the suspended Woodford Equity Income Fund, with the beleaguered fund manger using the suspension to sell-off its shareholdings in smaller, illiquid stocks in favour of FTSE 100 companies.

‘We are very sorry for the continued suspension and understand the concern it will be causing investors,’ Woodford said. ‘We remain fully committed to getting the fund into a position that delivers the best possible outcomes for our investors – for those who wish to withdraw their money from the fund when it reopens and for those who wish to stay.’

BT shares down 25% since January

BT continues to see its stock underperform the market, with it down more than 25% on a year-to-date basis, while the FTSE 100 has risen 10% over the same timeframe.

The company is more than a year and half into its turnaround strategy which the telecoms provider embarked on after its stock hit a six-year low at the beginning of last year.

In a bid to curtail its stock falling further, BT is looking to cut 13,000 jobs across the group and investing billions in rolling out superfast fibre broadband across the UK.

BT: Technical Analysis

BT shares have gained ground over the past month, with the weekly chart highlighting the rise into the 20-week simple moving average (middle Bollinger band). That rally comes within a widespread downturn that has seen the stock lose 56% in less than four-years.

Within that journey, the middle Bollinger band has proven a reliable selling point, with price invariably turning lower at or around this indicator. This provides a bearish backdrop to the stock despite recent upside. The key levels to watch on this chart will be £2.18 and £2.48.

The daily chart provides a more detailed view, with price trading in the upper zone of the Bollinger band this month. However, this looks like a retracement of the selloff from £1.99, thus bringing the Fibonacci levels into play.

Thus far we have seen a rally into the 61.8% Fibonacci retracement level, and thus with the weekly chart highlighting the possibility of a bearish reversal from 20-SMA resistance, this 61.8-76.4% retracement zone looks prime for another bearish turn in this stock.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
-
-
-
-
China 300
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Monday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider.You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.