SUN is a financial services company based out of Queensland. Its main business units are retail banking, business banking, general insurance and wealth management.

The impact of the global credit crunch has taken a toll on SUN. This saw the company report a 47.7% fall in full year earnings following a massive profit downgrade.

Volatile international markets and an abnormally high number of severe weather events continue to affect the company.

Significant moderation in lending growth is expected across its mortgage, consumer and commercial portfolios.

SUN temporarily enjoyed a good run when Westpac launched a takeover bid for St George Bank. This raised eyebrows on possible takeover targets in the financial sector with SUN seen one of the more likely options.

However, this has since cooled off and SUN shares have retreated.

Due to high costs growth and its tight capital position, we feel SUN is facing some tough times ahead.

SUN is approaching key support at $11.00 for the fourth time in 2008, this time on heavy volume.

We are expecting a clean break of $11.00 just yet, but we anticipate that  SUN's share price will continue to is weaken. It looks like only a matter of time before $11.00 fails and makes way for lower prices.

We can see a dominant downtrend in SUN's chart, with a dominant proportion of red candles, and the 8- and 21-day moving averages are continually creating bearish crosses.

SUN is currently contained under a short-term downtrend line which is trailing down, but is now intercepting at $12.75. We see no reason for SUN not to continue heading lower, given the negative signal from the MACD indicator, the dominant downtrend line and negative moving averages crossover.

At this stage no clear entry level stands out, but stops would need to be at least above the downtrend line which is currently at $12.75.

We will monitor SUN and will alert members via SMS if an ideal entry point is identified.

ASR will track this trade as an SMS Support trade – with all important information regarding the trade to be conveyed through SMS updates.

ASR entry only by SMS Alert, but members may enter according to their own discretion based upon the above analysis.

As usual, we will not be risking more than $200 on this trade at our stops.