A failed trendline breakdown occurs when the price breaks

A failed trendline breakdown occurs when the price breaks below an established trendline support but fails to sustain lower levels and quickly moves back above the trendline. This indicates that selling pressure may be weakening and buyers are stepping in to defend the support zone. Such a move can trap bearish traders who entered short positions after the breakdown, potentially triggering short covering and a sharp upward reversal. If the price reclaims the trendline with strong bullish momentum and volume, it may signal a potential trend continuation or reversal. However, confirmation through sustained price action above the trendline is important before considering the setup reliable.