Broken Europe...

This week seems to be a crucial week for European equities(VGK). Substantial technical damage has been done as VGK price broke the ascending trendline from early 2012.

Zooming in (in grey, our preferred scenario)

Europe: 2 possible scenarios

2 possible scenarios for European stocks (VGK):

Scenario A (H&S)
Currently start forming a Left Shoulder:

If the above scenario plays out then targets are 45 and maybe  even 34$.We favor this scenario

Scenario B (Trading range ~54-60)
This is a rather neutral scenario although we believe that if it plays out , it will be followed by a gradual descend towards 50 and later on even 44$