- Summary:
- Aviva share price returned above GBX 490, but the bears are holding off a move to GBX 500. But, here's why I think the upside will prevail.
Aviva share price dropped from the GBX 500 mark and investors will be keen for its return to the psychological mark. The share price was up by 0.7 percent in the early hours of Monday’s trading session, maintaining an uptrend that goes back three sessions, and signaling a potential bullish upturn. That said, Aviva share price is still down by 2.7 percent in the last five sessions, pointing to near-term bearish control.
The insurance giant generated £875 million in first half operating profits, beating analysts’d forecast of £830 million. In addition, it has set an ambitious target of generating £2 billion in annual profit by 2026. To do that, the company will need to strengthen its brand appeal across its primary markets in the UK, Canada and Ireland.
Aviva plc (LON: AV) sold its Singapore Life Division in March this year, narrowing its market at a time when diversification could have possibly been a better option in a global economy punctuated with recession undertones.
Meanwhile, the company announced on Monday that it is expanding its hospitality coverage in Ireland, targeting selected hotels, restaurants and pubs. The Aviva made the move in reaction to the Irish Government’s Action Plan for Insurance Reforms aimed. Thatcould bring in a significant portion of a premium market estimated to be worth between €100 million -€150 million.
Aviva share price today
The 1-hour char below calls for further gains by Aviva share price above the GBX 490.0 pivot mark. The bullish momentum will likely be moving to 495.1, where it will likely encounter the first resistance. A break above that mark will strengthen the upside to potentially move the price further up to the second resistance at 500.0.
Conversely, moving below 490.0 will strengthen the sellers to take control, and the first support will likely be at 485.9. However, an extended control by the sellers could enable them to breach that support and test 481.8.
