Aviva’s share price is trading solidly higher on the day after posting a 1.61% gain, in a reversal from yesterday’s market plunge. Banking and insurance stocks endured a miserable Monday, with Aviva’s share price falling 2.06% to mark a third consecutive losing session. However, the bulls ensured that a 4th day loser remained off the table, with strong demand lifting the stock with a bullish spread on the charts.
On Tuesday, news leaked of Aviva’s additional £100 million investment in ITS Technology Group, a UK wholesale fiber access network operator. ITS says the insurer’s initial investment allowed it to significantly expand its network footprint by providing all-fiber infrastructure to high-demand areas for its Gigabit-enabled connectivity plans.
This investment from Aviva’s asset management division brings its total investment to £145m, as it had already committed £45m to the network in January 2020. The investment appears to have boosted sentiment investors in the stock. The stock’s 12-month price target set by institutional analysts is 511.43, with all seven analysts giving the stock a BUY rating.
Aviva Share Price Outlook
The rise for the day met resistance at the price level of 438.5 (highs from February 23rd and March 25th). Bulls need to breach this barrier to send Aviva stock price activity towards the resistance at 447.1 (February 9th and April 21st highs).
Any further advance to the March 29 high at 467.9 forces the bulls to breach the barrier at 447.1. Additional northbound targets lie at 476.6 (1st Feb 2017 low in role reversal and 8th Oct 2018 high) and the price mark of 489.9 (4th Oct 2017/5 low November 2017).
The flip side shows the potential playbook if the bears initiate a correction from the current resistance. This move would target immediate support at 422.5 (March 21 and April 7 lows) before 408.2 (December 24, 2021 and February 24, 2022 lows) come into play. Further support lies at 396.7 (March 9 low) and the December 13, 2021/March 2, 2022 lows at 391.5.
Aviva: price of the day
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