Technical Analysis Snap: Aviva surges despite dividend cut

6th Aug 2009 09:00

The decision by Aviva to cut their dividend by 31% has been shrugged off by the market as they announced increased profits after tax of £747m from an £84m loss a year ago.The insurance sector has suffered along with other sectors over the past two years; with the chill winds of the financial meltdown declining from its highs in 2007 at 858p to hit lows of 160p in March this year. Since March the share price has recovered strongly and is looking to test trend line resistance from the highs at 785p in October 2007 which currently comes in at 394p. Above that we have further resistance at 426.70p which is 38.2% Fibonacci retracement of the 858p/160p decline, and this is doubly significant being that it is also close to the highs of November and December last year. For periodic TA updates follow me on TwitterAlso read my Investors Guide to Technical Analysis and Level 2