Aviva (LON: AV) share price has failed to reclaim the 430p level, as discussed in last week’s analysis. The shares of one of the largest insurers in Brittain are currently 13% down from their YTD high. This decline in the share value can be attributed to global banking concerns and the failure of multiple banks in the US.
On Monday, shares of major UK banks turned positive as the FTSE 100 Index gained 17 points. Aviva share price UK also showed minor gains of 0.6% and was trading at 406.6p till press time. After a 9.45% drop in March 2023, the shares are currently recovering.
Insurance Stocks Can be A Good Buying Opportunity
According to the major financial services company, RBC Capital Markets, the lower prices of the insurance companies is a buying opportunity. In a note, the investment bank said that the insurance sector was not prone to a similar crisis to SVB. This is because the industry employs risk sharing and has ample liquidity.
Nevertheless, the sell-off in March sent the Aviva share price UK to its lowest level in 6 months. The following bounce also seems to be vanishing as the shares lost most of the gains last week. As per the recent Aviva plc news, the company has renewed its partnership with the cloud insurance platform software provider Majesco.
Aviva Share Price Needs To Break Above 430p
The following LON: AV chart reveals a few key levels that the shares have respected recently. Since May 2022, the price has been trading within a range that is shown on the chart. The bottom of this range has acted as a support while the shares have experienced huge resistance at the range highs.
Currently, the most critical level is the 430p level which is the midpoint of the range. The presence of a 200-day moving average around this level makes it even more significant. My Aviva share price forecast will remain bearish as long as it trades below 430p. A reclaim of this level can send the price towards range highs of 474p.
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