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by Darius Anucauskas

BT Group Stock Is On The Edge

Looking at the technical setup on the daily chart of the BT Group stock (LON: BT.A) we can see that it is now trading slightly below its medium-term upside support line drawn from the low of August 27th, which paints a more negative picture. That said, the price is struggling to move below its key support area, at 186.80, which is the low of November 8th. We need to see a daily close below that area first, before we could examine slightly lower areas. 

If, eventually, we get a daily close below the 186.80 support area, this may spook some potential new investors of jumping into the stock, as it could increase the chances of a drift lower towards the 182.50 hurdle, which is the high of October 1st. Initially, the slide might stall around there, but if there are still no buyers at that area, a further move lower could set the stage for a test of the 171.80 level. That level is marked near the lows of September 18th, 25th and October 3rd.

Taking a quick glance at our oscillators, the RSI and the MACD, we notice that both are leaning towards the downside idea, discussed above. The RSI is below 50 and points lower. The MACD has now moved below zero and also points lower, while running below its trigger line.

Alternatively, if the price reverses and moves back above the aforementioned upside line, this might raise the interest among new buyers. But more of them may join in only after BT.A travels above the 193.20 barrier, marked by the low of November 12th and by the high of November 18th. Such a move could increase the stock’s chances of moving further north, possibly targeting the 198.20 obstacle, a break of which might send the price a bit higher to test the 207.00 level, marked by the high of October 31st.

BT Grouyp daily

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