Sonata Software

breakout point can act as a support—but with a key condition: the breakout must be successful. Here’s how it works: 📈 When Breakout Becomes Support (Post-Breakout Retest): When price breaks out above a resistance level with strong volume and momentum, that resistance becomes a new support. Price often comes back to retest the breakout level. If it holds (doesn’t fall back below), that confirms the breakout and the level acts as support. 🔄 Why It Happens: Traders who missed the breakout want to enter on a pullback. Those who sold earlier at resistance now see it as a buying opportunity. It builds confidence among market participants. 📌 Example: Stock breaks above ₹100 resistance. It rallies to ₹110, then pulls back. It finds support at ₹100 (the breakout point), then moves higher. This is known as "support-turned-resistance" or "role reversal"—a classic technical analysis concept.