After a record year for telecom stock in 2025, investors are now watching how the 0.50 level will shape trading strategies in the coming months.
Record 2025 performance sets the stage for 2026
Telecom is closing an exceptional 2025, with the stock delivering a one-year return of 100.97%. Since January, prices have moved within a clear bullish channel that has consistently produced higher highs and higher lows, underscoring strong market momentum.
In autumn, however, this prolonged advance met very strong resistance at 0.50. A brief and cautious breakout attempt occurred above that threshold, but the move failed to follow through, leaving the doubling of capital as the main achievement of the year.
Moreover, the 0.50 reference value has now become the pivotal benchmark around which trading plans for 2026 are likely to be built, both for short-term traders and medium-term investors.
Fundamental backdrop: Strategy and M&A speculation
At the close of this historic year, it is notable that the telecom giant has posted such strong performance despite quarterly results that highlight structural issues. Profitability and cash flow trends remain the main areas of concern, limiting purely fundamental enthusiasm.
Market participants have, however, identified two key drivers behind the rally. First, the broader European telecom sector has been fueled by forecasts and merger-and-acquisition speculation, in which Telecom is seen as a potentially central strategic player.
Second, a series of favorable analyst valuations has cast Telecom as a leader in this phase. These rating upgrades and positive target revisions have bolstered investor confidence and helped sustain buying interest even in the face of mixed operational data.
Technical analysis around the 0.50 pivot
The recent pullback to 0.50 suggests that prices are once again testing this strong resistance, with the market gauging the possibility of a renewed upside attempt. However, trading volumes indicate that volatility is being dampened around this key target price, signaling hesitation among both buyers and sellers.
A move toward 0.60 appears unlikely in the immediate future, although such levels may be discussed again during 2026 if momentum resumes. That said, a short corrective phase aimed at profit-taking from the recent highs seems a more probable near-term scenario.
Several indicators confirm this view. Trading volumes have returned to historical averages, the stochastic oscillator sits in a neutral area with signals leaning toward overbought, and prices are flattening around their historical mean. Together, these factors point to reduced volatility and the emergence of a consolidation zone near the 0.50 reference level, a classic telecom consolidation zone for technicians.
Within this framework, many chartists are refining their telecom stock trading strategy, assessing whether the current lateral movement will resolve in a fresh breakout or a deeper pullback toward the lower boundary of the rising channel.
Key support and resistance for the week
From a weekly perspective, the main resistance level remains clearly defined at 0.50. A decisive break above this price would shift focus toward 0.52, corresponding to the peak reached in late October, and would reopen discussion of a more extended bullish phase.
On the downside, the first key support is identified at 0.48. Should selling pressure intensify, the next crucial area becomes the rising channel base near 0.47, where buyers are expected to test their conviction and defend the uptrend.
Moreover, a strong and sustained weekly close above 0.50 would project an upside target of 0.55, although this remains a less likely outcome in the short term. In the nearer horizon, 0.52 stands as the primary upside objective, while short positions are likely to focus on the 0.47/0.48 support band.
Price, dividends and yield profile
As of early December 2025, the current price stands at €0.50, exactly at the central resistance and reference level shaping the technical picture. Over the last twelve months the stock has returned 100.97%, confirming the magnitude of the rally.
However, the income profile remains weak. The quarterly dividend is 0, the dividend yield is also 0, and the dividend quality rating is just 0/5. This configuration underlines that the story is currently driven by capital gains expectations and industrial positioning rather than income-seeking investors.
Outlook and conclusions for investors
In summary, Telecom closes 2025 with an outstanding share price performance, largely attributed to its strategic industrial role in the sector and to ongoing M&A narratives. This has occurred despite quarterly results that do not yet fully support such a strong valuation from a purely fundamental standpoint.
Prices are now moving sideways and remain anchored around the 0.50 target, which has become the central battleground between bulls and bears. Going into 2026, the market’s reaction around this level, together with any concrete developments on corporate deals and profitability, will be decisive in determining the next major trend.