Kalyan Jwellers

In technical analysis, when a price breaks out of a resistance level, that resistance often turns into a support level. This concept is based on the principle that once a significant price level is breached, market psychology shifts. Why Does a Breakout Point Become Support? Role Reversal: When resistance is broken, sellers at that level may turn into buyers on a pullback. Confirmation of Strength: A breakout suggests strong buying momentum, making it likely that traders will defend the new support level. Psychological Factor: Traders who missed the breakout see the retest as an opportunity to enter long positions. stock chart is an example of clear example of breakout point become support line.