Aviva Share Price Bores Investors As FTSE 100 Index Drops

Summary:
• Aviva Share Price Forecast: Our LON: AV outlook will remain bearish until the stock breaks above 429p, where lies the 200 MA.

Aviva (LON: AV) share price has become highly volatile since the banking crisis in the US. The British insurance giant had to face serious headwinds as the uncertainty encapsulated the whole banking industry. Nevertheless, Aviva shares have rebounded strongly from their March 2023 lows and are now trading 8.8% up from the lows.

The FTSE 100 index dropped by 47 points on Wednesday. Aviva share price also depicted minor losses and was trading 0.17% lower at press time. Our analysis shows that the shares will likely remain volatile in the near term as the price appears to have entered into an accumulation phase.

Institutions Own 81% of Aviva Shares

According to a recently released report from Yahoo Finance, 81% of the Aviva stock is owned by institutions. Furthermore, the top 19% own 50% of the company. These stats make institutions the largest stakeholder in Aviva PLC, as the general public only owns 16.8%. Only 0.1% is owned by the government or state. This indicates that the institutions are the biggest gainers if Aviva share price performs well.

In other Aviva news, Moody’s has confirmed the financial strength rating of Aviva Insurance. The top rating agency has also maintained the ratings of AXA UK and L&G ratings at ‘stable’. It is significant to note here that Both Aviva and L&G have manageable direct exposures to UK sovereign debt.

The stable outlooks on Aviva and L&G reflect the two insurance groups’ strong fundamental credit profiles and robust capitalisation

Statement from Moody’s

Aviva Share Price Forecast

Technical analysis of the LON: AV chart reveals that the price has been facing strong resistance from the 429p level. This has become one of the most critical levels on the chart due to the confluence of 200 MA and the range mid. It is quite clear from the daily chart that the stock has faced multiple rejections from this level.

For Aviva share price forecast to flip bullish, the price must break above 429p soon. In case of another rejection from this level, I expect the price to retest its range lows that, lie around 383p. This is the next major support which may result in another rebound.

In the meantime, I’ll keep sharing updated outlook on LON: AV in my free Telegram group that you’re welcome to join.