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THREETREND RESEARCH

12th Oct · SEBI-Registered Analyst

PGEL
When price takes resistance at a trendline and reverses, it means the trendline is acting as a barrier that the price is unable to cross. In a downtrend, a descending trendline connects lower highs, and whenever the price moves up to touch that line, sellers become active again, pushing the price back down — this confirms that the trendline is still respected as resistance. Such reactions show that the prevailing bearish trend remains strong. Traders often use this behavior to enter short positions or confirm that the market has not yet broken out of its downward phase. The more times price touches the trendline and reverses, the stronger that resistance becomes — until a breakout eventually happens with strong volume and momentum.

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