King of Charts Zak Mir reckons BT Group PLC (LON:BT.A) is on the road to recovery after enduring an uninspiring 2016 so far, which has seen its shares drop off by nearly 20%.
Mir said that the company had been hit hard by news that it might be forced to sell-off its Openreach division due to competition reasons.
“That tussle [between BT and regulators] is the reason shares have been sliding through the year as the market frets over what would happen there and the uncertainty of that Openreach division.”
With that issue now behind it, Mir thinks the stock is ready to kick on and the bullish chart suggests it might just do that.
“[The stock has] been sliding for months, basically since the end of last year…[but] with the higher lows in place and the higher highs, [this looks like] quite a favourable chart,” he told Proactive.
The chart is now in a 'falling wedge' formation, added Mir, which generally sees the price break upwards and move into an uptrend in the near future, and this could represent a good buying opportunity for investors.
“Hopefully, fans of BT will now have a chance to buy into this. The obvious target here would be towards £4.20 to £4.40.”