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| Aviva in bearish technical signal, but fundamentals bullish |
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| Written by Will Peters | |
| Tuesday, 17 August 2010 08:50 | |
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But Dolmen Stockbrokers say that in the long term Aviva is undervalued. This morning the team at spread betting firm Delta Index have pointed out a MACD crossover on the Aviva charts. Delta have therefore suggested spread bettors sell at 374 while setting a stop at 382 and taking profit at 361. But, the bearish signal contradicts the view that Aviva offers investors long term value. Dolmen Stockbrokers yesterday said Aviva shares are undervalued at current prices. They urged investors to target 500p a share, that is 30% higher than the current live price. Aviva shares are higher at 383 this morning. Those looking at spread betting Aviva should probably keep an eye on the RSA / Aviva news, as this appears to be driving sentiment on the stock at present, unfortunately technical signals often fail to have any significance when the fundamentals are so strong as they currently are with Aviva. This morning's press coverage on Aviva suggests leading Aviva shareholders are to press the UK insurer to reconsider its dismissal of a £5bn ($7.8bn) offer from rival RSA for its UK, Ireland and Canada general insurance business. The two insurers opened up a war of words after RSA responded to Aviva’s confirmation on Monday of the dismissal with a public declaration of its value, writes the FT. |
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| Last Updated on Tuesday, 17 August 2010 14:55 |
Spread Betting Lessons - Cut out the emotion!
Oh, and also a lesson why the Stop Loss is your Friend !
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Spread betting at a glance
- Spread betting is a financial product that allows retail and professional investors access to the widest possible number and types of exchange traded instruments.
- The spread betting company that you trade through is the market maker, the trader does not actually take ownership of any underlying product. Hence, most jurisdictions do not charge stamp duty on any gains.
- The notion that you don't actually own the product ensures spread betting platforms are able to almost instantaneously execute orders on behalf of their client.
- Spread betting is a leverage product, your money is able to realise you impressive gains as your earnings come in multiples of the actual change in the underlying product that you are trading.
- This is of course where spread betting can also go spectacularly wrong. Losses can be huge, therefore we advise those that are spread betting, or are looking to go into spread betting, to enter each trade with a well thought out strategy. This also means setting a pre-determined stop loss so that losses are cut at a manageable level.
- This website is here to offer more insight into this fascinating trading instrument.



