Aviva (LON: AV) share price appears to be consolidating after a very bearish breakdown. The daily chart of the insurance giant is giving very bearish signals with targets below 400p. Nevertheless, there is a key level on the chart that the bulls need to reclaim in order to avoid further downside.
The benchmark of UK equities, the FTSE 100 index, started the week with positive sentiment as the index rose by 0.60%. This translated into a gain of 46 points during the first trading session of the week. Aviva share price opened higher but turned negative once again after closing two consecutive weeks in the red.
Aviva Shares Tumble Despite Yielding 7%
The slump in the shares of Aviva plc is surprising for many analysts as it yielded 7% last year. The company is also announcing new deals and partnerships, which show growth in business. On May 5, the company announced a £900 million bulk annuity buy-in for the Thomas Cook Pension Plan.
Furthermore, Aviva CEO Amanda Blanc announced in its 2022 results to keep liquidating non-core businesses of the company. Since her joining, the company has sold its eight businesses in Italy, Turkey, Singapore, France, and Poland. However, Aviva share price appears to have shrugged off the company’s efforts to streamline its operations to reduce costs.
Aviva Share Price May Retest 400p Soon
Not a lot has changed since my last week’s LON: AV article, as the chart depicts a sideways price action. The daily chart shows a clear breakdown of the bear flag pattern. The measured target of this breakdown is 374p. Just before this level, there lies major support at 384p.
Therefore, the most likely scenario appears to be a retest of the 375p-385p level in the coming weeks. To avoid this bearish Aviva share price forecast, the price needs to break above 430p soon.
In the meantime, I’ll keep sharing updated outlook on LON: AV in my free Telegram group that you’re welcome to join.