Vodafone (VOD) isn't far off from the setup in MGM; the $187 billion mobile phone carrier is currently forming a rounding top. Rounding tops look just like they sound; they indicate a gradual shift in control of shares from buyers to sellers. But while the price action at the top may be gradual, the break below support tends to be a lot more abrupt.
For VOD, the breakdown level to watch is $36.
Momentum adds some confidence to the VOD trade. 14-day RSI, our momentum gauge, has been trending lower since shares started topping. That means that down days in VOD have been a lot more forceful than up days since December. The downtrend in RSI is getting tested this week. Based on previous price action, that increases the chances that VOD's share price will be swatted lower in the near-term.