Will Aviva turn, or will it continue to rise towards 437p November highs?

• The chart shows Aviva price action since mid-November.
• Shares trading close to 2019 highs; +10% from 2019 lows; +6.7% year-to-date.
• Shares have rallied close to 12% since Christmas.
• Now trading at 400p (at the time of writing)
• 11 Dec: Aviva upgraded to Top Pick by RBC Capital Markets, target price at 540p.
• Will the strong positive momentum continue?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Aviva – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Aviva using a CFD, at the current price of 400p. To do this, you need £2,000.

Let’s assume the Aviva trend continues to 437p November highs (+9.2%). Your profit would be £920, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Aviva falls 3% and hits your stop-loss. Your loss would be £300.

This is provided for information purposes only. It should not be taken as a recommendation.