Shares of China Mobile Ltd. (CHL) are showing signs of a technical breakdown. The stock is down 26% this year and now trading at levels not seen since last summer. This comes after a strong run last year. A strong run that still seems to have the optimists holding on. To see what I mean, let's start with the weekly chart.

Chart Courtesy of Thomson Financial

Regular readers may remember that this is not the first time I have offered cautious comments on this stock. In late-March I posted this piece - China Mobile Ltd. (CHL) - Time to Jump Ship? - which discussed the near-term downtrend. In all fairness, I was wrong then. At least on a short-term basis. As the chart above shows, the stock did offer a quick pop but that ran its course by mid-April.

The weekly chart above is now set-up to show the former support sitting near the March lows. It looks like buyers tried to support the stock there last month but selling pressure dominated. Today's drop of 8% leaves support firmly broken.

The reason that I am noting this breakdown is that it doesn't appear as if it has been widely recognized. For example, the Street is still holding a mostly bullish opinion. According to Zacks, 5 of 6 analysts (83 percent) rank the stock with a "buy" rating. Also, as my colleague Elizabeth Harrow noted last week, the put/call ratio has been steadily grinding lower, indicating optimism.

The stock is showing a short-term oversold reading here but I wouldn't get too excited about. The former support now looms as overhead resistance and I would be concerned that some of the bulls may now be looking to sell into any strength.