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 once again showing negative price action as the faith in the global banking industry gets tested. Last week ended with concerns about the financial health of another banking giant, i.e., Deutsche Bank. This triggered a sell-off in bank shares once again, which were recovering from their monthly lows.
On Monday, Aviva shares opened at 417.6p, but the price slid to 411.1 within the first 3 hours of trading. At press time, the shares were still 0.64% up from their previous close. This translates into a 12% drop from the YTD high of 467.3p.
Recently, Aviva released the details of its annual individual protection claims. According to the report, the British insurer paid more than £1 billion in claims last year. This was the third consecutive year in which the company paid more than $1 billion.
It was also revealed that the claims paid rater stood at 98.3$, which was the highest since 2015. During 2022, a total of £1,07 billion was paid against 50,595 claims. These claims were related to life insurance, income protection, critical illness, etc.
As mentioned in our last Aviva share price forecast, the shares have bounced off the range of lows. Since the retest of the support, the price is already 6.69% up. The ongoing pullback is due to the rejection from the 200-day moving average and the range mid. These confluences have made430p level a huge resistance that the price needs to overcome.
A reclaim of the 430p level can send the price toward the range high that lies at 475p. This will also mean a new YTD high for Aviva shares which are currently 11.9% down from the yearly high. The following chart shows the simplified technical analysis on the LON: AV chart.
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This post was last modified on Mar 27, 2023, 12:40 BST 12:40