The share is meeting an important level. We suggest caution because this point could stop the bullish trend.
From a fundamental viewpoint, the company still suffers from negative results in 2012 (loss of -2.7 billion pounds in 2012). Moreover, analysts from the Thomson Reuters consensus have revised downward their EPS estimates.
Technically, the security could run out of steam close to the GBp 374.9 resistance, corresponding also to the bearish trend line. Indeed, the stock is moving in an upward trend in the short term but it could know a halt. In this context, the downward movement could take the upper hand and come back to GBp 342. Indicators that show an overbought situation confirm this scenario.
Therefore, the proximity of mid-term resistance suggests a consolidation or a correction phase in the coming sessions. The most offensive will open a short position close to GBp 374.9 to target a return on the GBp 342 support. It should protect the position with a stop loss set above GBp 374.9.
Aviva plc is a United Kingdom-based insurance, wealth, and retirement business company. Its segments include UK & Ireland Insurance, General Insurance, and Aviva Investors, International investments, and Other Operations. The principal activities of UK and Ireland Life operations are life insurance, long-term health and accident insurance, savings, pensions and annuity business. The principal activities of UK & Ireland General Insurance operations are the provision of insurance cover to individuals and businesses for risks associated with motor vehicles, property and liability, and medical expenses. The principal activity of Canada General Insurance operation is the provision of personal and commercial lines insurance products, for risks associated with motor, property and liability distributed through insurance brokers. It also operates Lloyd's platform, encompassing its Corporate Member, Managing Agent, international distribution entities and tenancy rights to Syndicate 1492.