DMCI finally fell from the head and shoulder neckline support at 33.00, to close lower at 32.05. With this price move, DMC looks set to be in a bearish bias for the next two months, and will probably test the support level at 25.75, which is also the head and shoulder breakdown price target.
After establishing the three peaks to form the head and shoulder pattern, and failing to sustain its steep bullish run from September, price has reached an exhaustion point, and may now be correcting, at least for the meantime. Looking at the weekly chart, the divergence from the uptrend line established from February this year has been too much already, and the recent breakdown may bring it closer to the trend line.
Once DMC has come back to the February 2010 trend line, and respected the trend support, then DMC can turn bullish again. However if not, then expect a renewed selling pressure from the market.
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