Is Aviva (AV) Stock Awaiting A Breakout Of Consolidation Phase?

• Aviva PLC has posted a net loss of 1.18 Billion GBP in the recent financial report.
• The AV stock price is trading very close to its 52-week high level.
• The stock’s dividend yield for the year 2022 is 7%.

Market capital of the Aviva’s stock – 10.867 Billion GBP

The Current market price of Aviva – 398.2 GBX

Aviva (AV) Stock Overview 

The AV stock price declined by 2 GBX in its previous trading session with a fall of 0.5%. Its price has declined by 0.20% in a week and surged by over 5% in a month. It is worth noting that the price of the stock has declined by over 8% in a year. It indicates that there is no clear trend in this stock as of now and the price is consolidating on the higher side.

The revenue of the company has been declining over the years. It has declined from 55.09 Billion GBP in 2016 to 23.09 Billion GBP in 2022, a fall of over 58%. The net income of the company has turned negative in the recent financial reports. It has declined massively by 382.93 % from 416 Million GBP to -1.18 Billion GBP.

The company holds a surplus of cash and cash equivalent equal to 13.94 Billion. The net debt of the company is in a negative trajectory because the financial obligation is less than cash holding. If we talk about the dividend yield, it is at 7%. That is an appealing figure for dividend-seeking investors. 

Technical Analysis of the AV Stock Price

The price of the AV stock has given a breakout of the symmetrical triangle pattern it has formed in between the consolidation. It reacted sharply after the breakout and it is now trading flat near the resistance level. The current movement of the stock is flat and it has been trading in a range for the last 6 trading sessions.

The resistance level as shown in the chart is present near 427 GBX level. The AV stock price has been supported by the rising trendline which is present near the price of 368 GBX. The horizontal support level for the price is present near the 345 GBX level and the second support is near the 304 GBX level.

Technical Indicators on the Current Price Movement

Aviva PLC’s stock is currently trading above the 50-day and 100-day Exponential Moving Averages. The slope of the EMA is turning upward, which is a positive sign for the stock.

The relative Strength Index (RSI) is currently placed comfortably above the 50 level. It shows that the stock is in bullish momentum.

Conclusion

The Financial reports of the company are weak and expected to perform weak in the near future. The price is consolidating at a higher level, which is good for the bulls. The AV share price is able to sustain at upper levels even after a poor financial performance. 

If it breaks the level of 345 GBX, it can try to challenge the 304 GBX level.

Technical Levels

Resistance – 427 GBX

Support – 345 GBX and 304 GBX

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.