Aviva share (LON: AV) price opened higher on Thursday as the UK equities rebounded from their weekly lows. The market sentiment was also reflected by a 40 points gain in the FTSE 100 index. At press time, shares of the insurance giant were trading at 418.5p after a slight correction from the daily highs of 420.7p.
The positive price action comes after two consecutive days of downtrend in Aviva’s shares. However, the bulls don’t seem to be in complete control after a rejection from the 425p resistance last week.
Price has also formed a lower low on the daily chart which is considered very bearish after a rejection from a resistance level. Nevertheless, bulls still have time to attempt another breakout as the price is still trading well above the 200 MA which lies at 404.7p.
In the event that Aviva share price breaks out above 425p, it may skyrocket to 435p, which is the next resistance level. However, such a move is only likely if the FTSE 100 index continues to rally.
Today’s surge in UK stocks comes due to overselling and the slowing down of inflation in the Eurozone in general and Spain and Germany in particular.