On 15/5 DAX broke down through support at 6420, which could also be construed as the neckline of a Head and Shoulders formation with a target near 5850.
Since May 16th DAX has been range bound 6220 to 6430.
Which way will it break?
Scenario 1 FLAG target at 6035
Scenario 2 Head and shoulders target at 5850
Scenario 3 market rallies from the consolidation, invalidating both of the above.
Rangebound action doesn't favour Head and shoulders normally more impulsive once the neckline is broken and retested.
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