AV.L closes below its opening price unable to hold early session gains
AV.L ended the week 0.69% higher at 497.80 after losing £5.00 (-0.99%) today. Trading £4.90 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Thursday's low at 499.20, the market confirms its breakout through the prior session's low having traded £2.70 below it intraday. Ending with a weak close near the low of the day sets a bearish note for the next session.
Friday's trading range was £8.10 (1.62%), that's slightly above last trading month's daily average range of £7.88. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being slightly below average.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar.
Unable to break through the key technical resistance level at 502.40, the stock closed below it after spiking as high as 504.60 during the day. The failure to close above the resistance could increase that levels importance as resistance going forward. After having been unable to move above 503.60 in the previous session, Aviva ran into sellers again around the same price level today, failing to move higher than 504.60. After spiking up to 504.60 during the day, AV.L found resistance at the 50-day moving average at 500.37.
Although the share is experiencing a short-term up trend, this might just be a correction, as both the medium and long term trends are still in negative territory. The market broke below the 50-day moving average at 500.37 today for the first time since June 5th.
Selling could speed up should prices move below the close-by swing low at 490.90 where further sell stops might get triggered. With prices trading close to this year's low at 482.20, downside momentum could accelerate should the stock break out to new lows for the year. Further selling might move prices lower should the market test July's nearby low at 484.80.
Even though both sentiments are bearish for the next trading day, our quantitative statistics are only bearish while the classical technical analysis metrics show a very bearish sentiment.
Market Conditions for Aviva
|Down Close Near Low of Period||TQ Pro Members Only|
|Close to R1 Resistance||TQ Pro Members Only|
|2 Consecutive Lower Closes||TQ Pro Members Only|
|Closed below last periods low||TQ Pro Members Only|
|Close to S1 Support||TQ Pro Members Only|
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