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Shaly Gupta

14th Apr 2025 · SEBI-Registered Analyst

SBIN

SBIN
When a trendline is broken, especially one that has acted as support, it can often flip roles and become a resistance zone. This concept is part of a classic support-resistance flip. 🔁 Trendline Support Becomes Resistance – Explained: When price: Is rising and bouncing off a trendline support, Breaks below that trendline with strong volume or momentum, Then retests the broken trendline from below... That trendline often acts as a resistance zone — price struggles to move back above it. 📊 Why Does This Happen? Traders who bought near the trendline may sell to cut losses when it’s broken. New short-sellers enter at the retest. It becomes a psychological level where market participants expect resistance. ✅ Characteristics of a Trendline Breakout → Resistance Zone: Clear break of the trendline Retest of the broken line from below Often accompanied by bearish price action (e.g., bearish engulfing, shooting star) Can be used for short entries

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