$VELVET …. Formation of Recovery Structure Following The Flush… Structure For Recovery Takes Shape
Long
Entry: 0.54 & 0.56
SL: 0.36
TP1: 0.80
TP2: 1.05
TP3: 1.36
VELVET is setting up a recovery structure following a violent flush which resulted in a depletion in liquidity and movement of price towards a major historic demand area. It looks like bulls are starting to get control over the chart with higher lows formation and this current rally may end up being an accumulation process rather than distribution. Should positive momentum persist, we could see the price turning back up towards the higher supply area around 1.30+.
Validity of the setup will be maintained as long as price trades above the 0.36 support zone. Confirmation of bullish continuation on the basis of a clean breakout of recent swing highs will lead to the entrance of new momentum players in the move.