Sun Life Financial Plunges 8.05% to C$56.54 Amid Heavy Selling Pressure

Sun Life Financial (SLF) experienced a sharp 8.05% decline to C$56.54 on August 8, 2025, extending its two-day loss to 8.48% amid significant selling pressure. The analysis below integrates multiple technical indicators to assess the current market structure.
Candlestick Theory
The recent price action exhibits a pronounced bearish bias, with the August 8 session forming a long-bodied red candle closing near its low (56.22–60.44 range). This follows a smaller bearish candle on August 7 (61.07–61.94), collectively reinforcing downward momentum. Key support emerges at the August 8 low (56.22), while resistance is layered near 61.07 (prior swing low) and 63.98 (Fibonacci level). A break below 56.22 may target the 54.46–55.46 zone (April lows).
Moving Average Theory
The stock trades below all key moving averages: the 50-day MA (approximately 61.80), 100-day MA (62.50), and 200-day MA (60.20), confirming a bearish trend across timeframes. The configuration shows shorter-term averages accelerating below longer-term ones—particularly the 50-day crossing under the 200-day ("death cross")—indicating sustained downward pressure. Current price deviation below these averages suggests oversold conditions are developing.
MACD & KDJ Indicators
The MACD histogram remains in negative territory, reflecting bearish momentum, though its slope shows mild convergence as selling pressure eases slightly. The KDJ oscillator registers deeply oversold readings, with the %K line near 5.2 after plumbing 9-day lows (62.39–56.22 range). While MACD signals ongoing bearish bias, KDJ’s extreme trough (below 20) hints at potential short-term exhaustion.
Bollinger Bands
Volatility expanded sharply during the decline, with price piercing the lower Bollinger Band (based on 20-day SMA near 60.30). The band width increased 25% over three sessions, confirming bearish momentum continuation. Closing near the lower band (55.70–65.90 estimated range) implies persistent selling pressure, though a reversion toward the midline could occur if volatility contracts.
Volume-Price Relationship
The 8.05% down day was accompanied by 1.65M shares traded—the highest volume in two months—validating strong capitulation. Distribution was evident during the July peak near 66.38 (lower volume on rallies), while the current sell-off’s expanding volume suggests panic selling. This volume signature supports trend sustainability unless reversed by equally forceful buying.
Relative Strength Index (RSI)
The 14-day RSI calculated at 21.4 signals deeply oversold territory (<30). Historically, similar readings (e.g., 22.1 in April 2025) preceded counter-trend bounces. However, oversold conditions can persist in strong downtrends. RSI divergence is absent, as new price lows align with lower RSI troughs, maintaining bearish confirmation bias.
Fibonacci Retracement
Using the 66.38 peak (July 2) and 56.22 trough (August 8), key retracement levels are 60.10 (61.8%), 61.30 (50%), and 62.50 (38.2%). These levels align with moving averages and prior support (61.07–62.00 zone), creating a confluence resistance barrier. The 61.30 midpoint is particularly critical as a bull-bear equilibrium zone.
Confluence and Divergence Observations
Confluence appears at 61.07–61.30, where Fibonacci, moving averages, and prior support converge as formidable resistance. KDJ and RSI agree on oversold conditions, but MACD’s bearish stance and volume confirmation suggest limited reversal conviction. No significant divergence exists among oscillators. Probabilistically, the weight of evidence favors bearish continuation unless RSI sustains above 35 alongside a close above 60.10 Fibonacci resistance.