Vodaphone traded off a key level of 197.5p last week having closed above it. The backtest of the breakout failed and was followed by a gap down below the short term uptrend support and there's a long term bearish divergence in the daily RSI.

The importance of this level can clearly be seen on this monthly chart and if it can break back above the 200.65p high from 22 May then it should go on to the next resistance at 231.75p.

For now, though, I'd favour a short at the gap down from 196.4p as it offers a nice tight stop above the 200.65p high. If that stop gets taken out then the above scenarios would become favourite and it may be worth reversing my position. If it works out I'll be looking towards the 185p area to close as there's a gap there and the 38.2% Fib of the last rise.