Evening time shot of London's famous skyscrapers including 'the Gherkin' ant the Aviva, London, England.
Aviva (LON: AV) share price has turned green for the sixth day in a row as the markets await the FOMC decision, which will be made tomorrow. The UK shares had a sluggish start to the week after opening after the labor day holiday. Nevertheless, the FTSE 100 Index showed minor gains and was up by 7 points.
At press time, Aviva shares are trading at 424.4p after rising by 0.33% during the first trading session of the week. Technical analysis shows that the price is heading toward a key resistance level which will decide the fate of the insurance stock.
According to the latest Aviva news, the group’s asset management company, Aviva Investors, has recently launched a real estate active long-term asset fund (LTAF). The new property LTAF has been designed to provide access to long-term private market assets. With an initial £1.5 billion portfolio, it is currently the largest real-estate LTAF in the whole market.
In other news, Aviva Group PLC has committed an additional £150 million to Aviva Ventures. The amount will be utilized to invest in early-stage startups. Aviva share price is currently more than 9% down from its yearly high. The following technical analysis takes a shot at predicting its future valuations.
Analyzing the LON: AV chart on a daily timeframe reveals very critical information for long and short-term traders. The major level on the chart is the 430p level which was also mentioned in my last week’s analysis. In the next few days, the price can retest this level. A reclaim of this level can make Aviva share price forecast bullish for at least the short term.
However, the biggest concern for the holders should be the bear flag formation on the daily chart. These patterns are the bearish patterns that often result in a continuation of the downtrend. Therefore, in case of a breakdown from the bearish pennant, which is visible on the chart, I expect a strong downward push till 383p. This region might act as a strong support as it lies at the range lows.
In the meantime, I’ll keep sharing updated outlook on LON: AV in my free Telegram group that you’re welcome to join.
This post was last modified on May 02, 2023, 12:25 BST 12:25