Aviva and peers see share prices rebound after ‘Black Monday’

The British insurer saw its shares tumble along with other UK stocks after ‘Black Monday’, but Aviva and its European peers have found support on Tuesday.

Aviva saw its shares fall close to 10% on ‘Black Monday’ – the UK stock market’s worst day since the 2008 financial crisis – as equities slumped amid fears of a global economic slowdown and the impact of the coronavirus outbreak.

However, the stock rebounded along with the broader market on Tuesday, with Aviva up 4% and the FTSE 100 climbing 3% higher.

Aviva is trading at 323p a share as of 12:10 (GMT) on Tuesday.

Aviva wasn’t the only insurer to find support on Tuesday, with European rivals like ASR Nederland, Helvetia, Baloise and Prudential all climbing more than 2% higher.

Looking to trade Aviva and other UK stocks? Open a live or demo account with IG today.

Aviva: technical analysis

Much like the wider market, Aviva has seen a ramp up in volatility over recent weeks, with the stock market slump providing a move into the confluence of trendline and Fibonacci support, according to Josh Mahony, senior market analyst at IG.

This monthly chart provides us with an interesting wider view, where the decline seen over the past two-years looks like a retracement of the £2.47-5.04 rally. With that in mind, the ability to remain above this 76.4% Fibonacci support level (£3.08) is important as we attempt to stabilise within this 11-year uptrend.

You can go long or short Aviva with IG using derivatives like CFDs and spread bets.

Rather more worrying is the very long term downtrend, with the 2018 peak having occurred at the 61.8% Fibonacci resistance level of £5.01. It will be key to watch whether we see this stock hold up or break below the trendline and Fibonacci support level around £3.08. A break below that region could point towards a move back into the £2.47 low to mark the end of this 11-year uptrend.

On the intraday charts, we can see a sharp decline from Thursdays peak of £3.71. That sharp decline is being retraced today, yet there is a good chance we will see the sellers come back into play before long. With that in mind, a bearish outlook remains in play unless we see price rise through the £3.71 peak.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

See opportunity on a stock?

Don’t miss your chance. Try a risk-free trade in your demo account, and find out whether your hunch could have paid off.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance. Upgrade to a live account to take advantage.

  • Trade a wide range of popular global stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform, when it matters

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Sell
Buy
-
-
China 300
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.