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Shaly Gupta

6th Sep · SEBI Registration INH000016108

A trendline acts as resistance chart example

PSB
A trendline acts as resistance when it connects a series of lower swing highs in a downtrend. As the price approaches this descending trendline, sellers often become active and push the price lower. Repeated rejection from the trendline makes it a strong dynamic resistance zone. A bearish rejection can indicate that sellers are still in control, while a decisive breakout above the trendline can signal weakening selling pressure and a possible trend reversal. Higher volume during the breakout provides stronger confirmation. In simple terms: Lower highs → descending trendline → repeated rejection → resistance → breakout above trendline = possible bullish reversal. chart is attached for reference

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