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Aviva in bearish technical signal, but fundamentals bullish PDF Print E-mail
Written by Will Peters   
Tuesday, 17 August 2010 08:50
But Dolmen Stockbrokers say that in the long term Aviva is undervalued.


A financial spread betting opportunity on Aviva Plc (LON:AV) has arisen in the form of a bearish technical signal.

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.

Last Updated on Tuesday, 17 August 2010 14:55
 

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