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 has once again perfectly met with my prediction, which was made in last week’s article. The shares of the British insurance giant are currently retesting a strong demand zone. This move is not surprising at all, as it was pretty much written all over the chart.
On Friday, the British stock markets turned red as the benchmark FTSE 100 index fell by 46 points in the opening hour. At press time, the index stood at 7,471 points. Aviva shares also opened lower today and were changing hands at 382p after falling 0.98%.
As a result of a major pullback since the start of June 2023, Aviva share price has fallen to its lowest level in 8 months. I’ve been predicting this move like a broken record in my previous articles. In fact, my prediction was initially laughed upon by many when the stock was trading 15% higher from its current level.
Consequently, the stock of the insurance and pension company has now tanked to its lowest level since October 2022. The latest analysis shows that the price has fallen into a major demand zone and might consolidate in the 364p-380p range before another major move.
The technical analysis reveals that LON: AV is retesting one of the most critical support zones on its chart. This retest of the 375p-385p region is happening due to a recent breakdown from the bear flag pattern. Anyone with a basic understanding of technical analysis could’ve seen this drop coming from a mile away.
Aviva share price forecast is not looking very bullish due to a massive pullback this month. The shares may trade sideways for a while within the critical demand zone as the Relative Strength Index (RSI) and the Money Flow Index (MFI) are currently oversold.
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 23, 2023, 09:20 BST 09:20