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THREETREND RESEARCH

5th Sep · SEBI-Registered Analyst

NETWEB
When a stock breaks out above a strong resistance level with good volume, that level often turns into a new support because of a psychological and technical shift. Earlier, sellers were active at that price, but once it is crossed, the same zone attracts buyers who missed the breakout or want to enter on dips. This creates demand near the breakout point, preventing the price from falling below it easily. In simple words, what was once a "ceiling" becomes a "floor," making the breakout level a strong support for future price action.

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