A rounding bottom pattern breakout and retest is a bullish reversal setup where the price first forms a smooth “U-shaped” structure, showing that selling pressure is gradually reducing and buyers are slowly gaining control; this phase reflects accumulation after a downtrend. The breakout happens when the price closes convincingly above the horizontal resistance (neckline) formed at the top of the rounding structure, indicating a shift in momentum from bearish to bullish. After the breakout, price often pulls back to retest the same resistance level, which now acts as new support; if buyers step in at this level and the price holds above it, the retest confirms the breakout and increases the probability of a sustained upward move.