Aviva is a British insurance giant also offering savings products in the United Kingdom, South-East Asia, the rest of Europe, or North America. It is also an asset management provider, and it offers investment management services for institutional clients.
Aviva share price declined dramatically when the COVID-19 pandemic reached the Western world, just like all stock market indices did. However, it bounced together with the general bounce in the markets and now threatens to break above the GBP400 key level.
With one week to go until the Q4 2020 earnings, can Aviva share price break resistance?
When Does Aviva Report Q4 Earnings?
Market Expectations from Aviva’s Earnings Statement?
The market expects revenue growth of about 10% and to reach 64.71 billion. At this rate, the company will trade at a forward price/sales ratio of 0.32. Should the company beat the market expectations, the share price might give it a try at horizontal resistance provided by the apex of a previous contracting triangle.
Aviva Shares: Technical Analysis
Aviva’s share price dropped from a triangle that acted as a reversal pattern. The drop happened during the March-April 2020 stock market rout, and the apex of the triangle should act as a major pivotal level. A move above the apex is a major milestone for Aviva’s share price, as it implies a full recovery from the pandemic and, why not, optimism regarding Brexit and its impact on the main business.
On a negative earnings surprise, the middle-point of the rising channel should provide dynamic support. That is the level where bulls will most likely step in, as well as on the lower edge of the channel. On a positive surprise, the focus shifts directly to the GBP400 level – a daily close above should trigger more upside.
What Is the Outlook for the Aviva Share Price?
Aviva recently decided to focus on its main businesses in the United Kingdom, Canada, and Ireland. As such, it sold its French business for EUR 3.2 billion and also announced the exit from Turkey. Through a collaboration with the venture capital firm Artemis, Aviva announced a new investment in fintech and insurtech in late January of this year. On a positive surprise on next week’s earnings, Aviva’s share price might try to challenge the all-important GBP400 key level.