Aviva (LON: AV) share price is hanging by a thread after a bearish breakdown on its daily chart. The shares of the parent of Aviva Insurance are facing headwinds as they dropped to their fresh monthly lows last week. Our analysis reveals that time is running out for the bulls.
On Monday, Aviva shares rebounded due to the bounce in FTSE 100 index. The benchmark index of the UK equities gained 90 points as the market showed an overall positive sentiment. Shares of Aviva were up 1.54% during the first trading session of the week.
LON: AV Faces Headwinds Since Earnings Report
Aviva plc released its earnings report on March 9. The report showed a staggering earnings beat despite the revenue decline. The company also announced a £300 million share buyback. Nevertheless, Aviva share price saw a massive sell-off in the following days due to the sudden collapse of Silicon Valley Bank in the United States.
The stock of the insurance giant had a 13% rebound from its March lows. However, this bounce turned out to be a dead-cat bounce as the shares are tanking once again. The next few days are very critical for Aviva shares as the bears are gaining momentum with each passing day.
Aviva Share Price May Drop To 374p
The following LON: AV chart shows a very bearish development in the past couple of days. This is the breakdown from the ascending wedge patter. This is a very bearish breakdown as the price has also formed a bear flag on its daily chart.
Due to this breakdown, Aviva share price forecast has flipped very bearish. Technical analysis gives us a price target of 374p for the bear flag breakdown, which is below the 384p support. If bulls failed to break above the 429p level in the next few days, then I expect the bearish price target to be met in the next few weeks.
In the meantime, I’ll keep sharing updated outlook on LON: AV in my free Telegram group that you’re welcome to join.