I have always taken an interest in FTSE 100 stocks. They are often neglected by traders and analysts alike, who prefer to focus on the more liquid and heavily traded US stocks. After spending years in the City of London, both professionally and privately, I have become accustomed to specialising in British stocks.
BT- British Telecommunications- stems back vastly in British history, and was privatised over 20 years ago. For those who do not know about them, BT is the main communications provider in the UK, for broadband, phone, TV and mobile. Through their various subsidiaries, they operate in over 180 different countries. They are one of the main FTSE 100 players, and a regular hit with individual traders and investors.
We are getting close to a critical cross-road with BT’s stock (as listed on the FTSE 100- BT). My primary form of analysis is fundamental, combined with price action and volume. In my opinion, all 3 matter in gauging the next major movement in any stock.
The 1W chart for BT takes us back to the 300p sticking level as seen in June 2013. It was a stage where price remained range-bound for just over the month, which led to its next explosive move up to the lucky heights of 400p. This was followed by the final bullish rise to the highs of 503p, the peak of the stock in its history.
The 1W chart also draws attention to the rolling-over of price. This is in accordance with Wyckoff’s principle of accumulation, mark-up, distribution, and mark-down. As price reflects a “mushroom-like” top appearance, price usually takes a bearish bias, and drops.
Admittedly, when looking back, it’s easy for traders to spot regular patterns. What amazes me about BT’s stock price is its magnetic attraction towards whole round numbers.
In fact, BT saw the largest drop in its share price when nearly 20% was wiped off as a result of accounting scandal and corruption by its Italian subsidiary, which was followed by the European Chief Officer, Corrado Sciolla,…
