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Aviva vs Legal & General share price: is now the time to buy?

Both insurers have seen their share prices slide over the past month, though analysts remain optimistic about their prospects over the long-term.

Analysts have mixed feelings about the future of Legal & General’s share price. JP Morgan retained its neutral rating and downgraded its target price to 269p in September, while UBS left its sell rating unchanged and lowered its target price to 200p.

Barclays, however, remain optimistic about the stock, with the bank reiterating its overweight rating and upgrading its target price to 331p. Legal & General’s share price sits at 234p as of 15:45 GMT on Wednesday.

Analysts are far more optimistic about Aviva. Both JP Morgan Cazenove and Barclays reiterated their overweight rating and upgraded their target price for the stock to 498p and 551p respectively. Aviva’s share price is currently trading at 375p levels.

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Legal & General: Technical Analysis

Legal & General have been on the slide over the past month, following an impressive start to September. Unfortunately, that rally failed to break into new highs, raising the possibility that we are seeing the beginning of a bearish phase.

The wider trend does remains bullish until price breaks through the prior swing-low; currently £2.15. The size of the August selloff does raise questions, yet we did see price turn higher despite a very deep pullback. As such, there is a good chance we could see the bulls come back into play to maintain the uptrend.

Watch out for support around the £2.31-2.25 Fibonacci zone, where a break below that £2.25 level start to bring worries that we could be seeing the beginning of a bearish phase. Ultimately, we will need to see price break below £2.15 for that bearish picture to gain traction.

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Aviva: Technical Analysis

Aviva has suffered heavy losses since the 2018 peak of £5.04, with the current price some 25% lower than that high point. Price is currently caught in a state of flux, with the creation of lower highs accompanied by higher lows.

While we have seen price retrace past the 61.8% Fibonacci level, there is still a chance we could see another leg lower to move into the 76.4% level of £3.08. Thus, the key is whether or not we break below the £3.50 level.

Until that level is broken, there is a strong chance that this current pullback could provide us with another higher-low. The long-term picture is bullish, yet we would need to see price break through the £4.03 level to bring about a more convincing bullish signal.

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.

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