toulouse , occitanie France - 06 25 2021 : aviva afer assurance logo text and sign brand on agency wall of French insurance office
Aviva (LON: AV) share price appears to be forming a bottom after a strong sell-off in the past few months. After showing some strengths in the last 2 weeks, the shares are once again trading lower. The stock of the insurance giant needs to break out of a key trendline to signal a bullish reversal.
After gaining only gaining1 point on Monday, the FTSE 100 index is down once again. The benchmark index slid by more than 8 points on Tuesday and stood at 7,401 just before the New York session. Aviva shares also showed a negative price action and were down 0.39% till press time.
According to the latest news, the asset management business of Aviva plc known as Aviva Investors, has appointed a new global head of distribution. The incoming executive Jill Barber brings 25 years of experience and was previously serving in GAM Investments.
As mentioned in my previous analysis, Aviva share price is currently retesting a major demand area that lies below 385p. As long as the price remains in this zone, there will always be a possibility of a strong rebound. The UK stocks seem to be lagging behind most US stocks which are now trading close to their yearly highs.
The latest technical analysis of the LON: AV chart reveals another retest of the key demand zone. As described in my last week’s Aviva share price forecast, I expect a bounce from this level. The invalidation of this setup will be a breakdown below 366p, which is the bottom of this support zone.
It is also visible on the following chart that the price is respecting a downward trendline on the daily chart. A breakout from this trendline will be a strong bullish reversal. In this case, the first major target could be 435p which is a previous support but may now act as a resistance.
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 Jul 18, 2023, 14:35 BST 14:35