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THREETREND RESEARCH

15th Feb · SEBI-Registered Analyst

COFORGE
Breakdown and retest is a classic price-action concept where an asset first breaks below an important support level or trendline, signaling potential weakness or trend reversal, and then comes back to retest that same level from below. During the retest, the old support often turns into new resistance, and if price fails to move back above it, sellers regain control and the downtrend usually continues. This retest phase is crucial because it helps traders confirm that the breakdown is genuine and not a false move, offering a higher-probability zone for short positions with better risk–reward.

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