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Mitie (LON: MTO) shares are approaching the 109p resistance level, which was last reached in June 2018. Currently, the stock of the British outsourcing company is trading at 106p, just 2.77% below that key level, with a slight increase of 0.19% as of now.
On September 21st, the Bank of England is expected to raise interest rates by 25 basis points, with the market anticipating that this could mark the end of the tightening cycle. In response, UK equities have been on the rise, driven by bullish sentiment, and the FTSE 100 index has surged to its highest level since March 2023.
Mitie Group, a British energy services company, recently acquired JCA Engineering, a UK-based project design and contracting firm. The acquisition involves an upfront payment of £21 million, with an additional £10.5 million to be paid over the next three years.
In another development, Mitie Defense secured a significant contract with the UK Armed Forces, valued at over £150 million. This deal includes the management of military accommodation facilities for UK forces in Germany. The contract will begin in Spring 2024 and is set to last for seven years. Mitie Group’s share price has risen by 38.72% from its yearly low.
The chart for LON: MTO indicates that the stock has been following an upward trendline since March 2022. After retesting this trendline for support at the end of August 2023, the share price bounced back by 14.5%.
If Mitie’s share price can break above the June 2018 high of 109p, the bullish momentum could continue, potentially leading to a 49% rally toward the 162p resistance level. However, if the stock faces rejection at the current levels, it could lead to a retest of the August lows around 91p.