Aviva (LON: AV) share price is in a downtrend once again. After a bounce in April 2023, the shares closed May 2023 with a 6.81% loss. The shares are currently having a relief bounce, but the latest analysis reveals that there is still a further downside.
The benchmark of UK equities, the FTSE 100 index, started the week with negative sentiment as the index fell 1.36% on Tuesday. However, the UK stock rebounded in the following days, and the index surged for two consecutive days. Aviva share price opened higher on Friday and maintained an uptrend. Till press time, the stock was changing hands at 401.8p after rising 0.8%.
Aviva Completes $379M Share Buyback
According to the latest Aviva plc news, the company has completed the share buyback programme of worth $379 million. During this programme, Aviva acquired about 72.8 million shares at an average price of 412 pence per share. On May 5, the company announced a £900 million bulk annuity buy-in for the Thomas Cook Pension Plan.
Recently, 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 Drop To 384p Soon
I have been predicting another retest of the 400p level by LON: AV for quite a while. I had to receive some backlash from the retail holders, but I was telling what was on the chart. The recent breakdown from the bear flag pattern has validated my forecast.
My Aviva share price forecast will remain bearish until the shares reclaim the 430p level. The most likely scenario appears to be a retest of the 375p-385p level in the coming weeks. I expect a strong bounce from this level as it is a strong support zone.
In the meantime, I’ll keep sharing updated outlook on LON: AV in my free Telegram group that you’re welcome to join.
