AV.L closes below its opening price unable to hold early session gains


Aviva (AV.L) Technical Analysis Report for Aug 10, 2018 [1 min read]
Highlights
AV.L breaks below 50-day moving average
AV.L closes below its opening price unable to hold early session gains
AV.L unable to break through key resistance level
AV.L fails to close above 50-day moving average
AV.L ends the day on a bearish note closing near the low of the day
TQ Sentiment
Report Sentiment: 88% Bearish
Technical Forecast:
Overview

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.

Daily chart for AV.L
Volatility

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.

Price Action

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.

Support/Resistance

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.

Trend

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.

Order Flow

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.

Conclusion

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
Condition Forecast Direction Win Avg Worst Best Events
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
More market conditions identified for TQ Pro members...
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Latest Report:

AV.L slumps -1.52% closing £7.50 lower

Aug 15, 2018
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