Aviva (LON: AV) share price has started to gain strength after the release of its H1 financial results. The shares had a strong rebound on Wednesday, rising more than 2%. This also means another breakout attempt from the downtrend, which has been prevailing since the start of this year.
On Wednesday, the benchmark FTSE 100 index started the day by dropping to fresh weekly lows of 7,363 points. However, the buyers stepped in soon, and the index had recovered to 7,386 points by press time. Aviva shares outperformed most of the blue-chip stocks and was up 2% today.
Aviva Posts Strong H1 Operating Profit
According to the H1 financial results released by Aviva plc today, the insurance giant reported above-forecast operating profit. During the first half of 2023, Aviva’s operating profit increased 8% to £715 million against the analyst forecasts of £701 million. The British insurer also announced an interim dividend of 11.1p, an 8% increase from the forecast of 11p.
After closing at 379.9p, in its previous session, Aviva share price opened at 377.2p on Wednesday. However, the shares had a strong surge as the buying pressure increased due to the H1 profit beat. However, the price is yet to make the bearish market structure.
Aviva Share Price Attempts Breakout
It is quite evident from the following LON: AV chart that the price has been respecting a downward trendline since January 2023. Even after multiple attempts, the shares have failed to break out of this downtrend. After its H1 results, the stock is once again attempting a breakout.
While the higher timeframe Aviva share price forecast is still not bullish, it may still target 405p after a reclaim of 390p. Currently, the shares are retesting the 390p resistance amid a sideways FTSE 100 index. UK shares are facing some serious headwinds due to the high inflation in the country.
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