Aviva share price (LON: AV) has bounced off after making new lows in February. Since the start of the month, Aviva plc shares are tumbling, losing 2.5% in the month. The price also made a fresh yearly low by tapping the $434.3 level.
Aviva plc is the largest general insurer in the United Kingdom. Its services like Aviva Life Insurance and Aviva Pension are serving clients in the UK, Ireland, and Canada. The company’s stock is listed in the London Stock Exchange with ticket LON: AV.
What Is Wrong With Aviva Shares?
Aviva has been in the news for its various buy-ins and lucrative dividends. As per the recent news, the firm has increased its holding of Jazz Pharmaceuticals plc by an additional purchase of 48,771 shares. Aviva plc has also raised its stake in C.H Robinson Worldwide, which is an American Fortune 500 transportation company.
The largest British insurer boasts a client base of 18 million and also has a 25% share in the UK insurance industry. The company’s stock has been struggling for the past few months as the Bank of England has kept on raising interest rates. The increasing inflation in the US is also slowing down the growth of its corporate as well as individual clients.
Aviva Share Price Forecast
Aviva shares have made a strong recovery since its October 2022 low of 366p. Since then, the stock has gained more than 20%. However, in a higher timeframe, the price action still remains sideways. There is also no major sign of a bullish reversal, as the price is still trading below its August 2022 high of 473p.
Aviva share price is currently ranging between August 2022 high and October 2022 low. Since the price has managed to remain above 200-day MA, it can still retest the 473p level. However, in the current market conditions, it will be very difficult to break above this level.
Nevertheless, a break above this level will make or forecast very bullish, with a price level of 600 GBX in sight. The March 2023 FOMC meeting and rate hikes will be the major factor affecting prices in the near term.