Aviva (LON: AV) share price is behaving exactly as explained in our last week’s analysis. After a 17.8% drop in March 2023, the shares are currently in the midst of a recovery. In the past few weeks, Aviva shares have shown good strength and are up 8.6% from their March lows.
Major UK shares, in general, and bank shares, in particular, surged during the last trading session before the Easter holidays. This has also led to an 80 points increase in the benchmark FTSE 100 index. Aviva share price UK closed the week at 417p after gaining 1.98% on Thursday.
LON: AV Gets ‘Moderate Buy’ Rating From Analysts
Data from the financial website Bloomberg suggests that most industry analysts are bullish on Aviva plc. Seven analysts that cover the stock have termed Aviva shares a ‘Moderate Buy,’ and five analysts have rated it a ‘Buy’. The average target Aviva share price from the brokerages that have covered Aviva over the last year comes out to be 516.8p.
Nevertheless, the rating for any financial institution in these times must be taken with a pinch of salt. The reason is the ongoing banking concerns that have collapsed multiple banks in the US. Even though the insurance sector is less prone to a similar crisis, the global financial situation as a whole might still affect Insurance companies if things go south.
Aviva Share Price Gets Rejected From 200 MA
The LON: AV chart shows a huge volatility spike in today’s session. During the first hour of trading, the shares surged to the 434p level and dropped immediately. This also meant another rejection from the 200-day moving average. As mentioned in our last week’s analysis, Aviva share price forecast will remain bearish till the reclaim of the 430p level.
At the time of writing, the shares of Aviva are trading at 417p. If the upcoming US inflation data comes higher, then a sell-off in UK equities might make LON: AV retest its range lows. These range lows lie at 385p.
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