oulouse , occitanie France - 06 25 2021 : aviva assurance logo brand and text sign blue green yellow of French insurance agency
Aviva (LON: AV) share price is on track for another leg down as the bulls fail to regain control. The shares of the British insurance giant have been sliding for four consecutive days. The latest analysis suggests time is running out for the bulls.
The benchmark of UK equities, the FTSE 100 index, remained sideways on the first trading session of the week. Aviva share price opened higher on Monday, but the price action turned negative as the day progressed. Till press time, the stock was changing hands at 400p after dropping 0.34%.
In one of the most significant developments, British insurers have pledged to invest GBP 100 billion in green energy. The ease in capital requirements will make these investments possible in the years to come. The revelation was made by the CEO of Aviva and Ireland Life Insurance business in front of a parliamentary committee.
In other news, the company has completed the share buyback programme of worth £300 million. A total of 72.8 million shares were acquired during this process at an average price of 412p per share. On May 5, the company announced a £900 million bulk annuity buy-in for the Thomas Cook Pension Plan.
I’ve been predicting the drop of LON: AV below 400p for the past few weeks. Many people were skeptical about this move, but it has now played out exactly as mentioned in my previous forests. Technical analysis reveals that the bears may target 375p level in the coming days.
My Aviva share price forecast will remain bearish until the shares reclaim the 430p level. The most likely scenario appears to be a retest of the 375p-385p level, which is a strong demand zone. This retest may trigger a strong bounce in the share price of one of the biggest insurers in the world.
In the meantime, you are also welcome to follow me on Twitter to keep track of my personal trades and the latest analysis on Aviva stock.
This post was last modified on Jun 12, 2023, 17:04 BST 17:04