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THREETREND RESEARCH

24th Aug 2025 · SEBI-Registered Analyst

ABFRL
In technical analysis, when a stock repeatedly touches a certain level or trendline but fails to move higher, that level becomes a **resistance zone**. Each time price rallies and gets rejected near the same line, it confirms the presence of sellers or supply pressure at that level. This repeated failure to cross above strengthens the resistance, as more traders recognize it and place sell orders around the same zone. As shown in the chart, multiple points of rejection along the drawn trendline make it a strong resistance area. A breakout above such a resistance is often seen as a powerful bullish signal because it indicates that buyers have finally absorbed the selling pressure and gained control.

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