A Rounding Bottom pattern is a long-term bullish reversal

A Rounding Bottom pattern is a long-term bullish reversal formation that usually develops after a prolonged downtrend. Price gradually moves lower, then enters a sideways/consolidation phase, and slowly starts recovering, creating a rounded “U-shaped” structure. This indicates that selling pressure is gradually weakening while buyers are steadily gaining control. The key confirmation comes when price breaks decisively above the resistance/neckline near the previous high, preferably with strong volume. After the breakout, the previous resistance can act as support, and the pattern may signal the beginning of a new bullish trend. The pattern becomes stronger when the breakout is supported by higher volume, improving momentum, and sustained trading above the breakout level.