Retest

A **breakout and retest** is one of the most reliable technical analysis concepts because it helps confirm whether a breakout is genuine or false. After the price breaks above a resistance level (or below a support level), it often returns to test the same level before continuing in the direction of the breakout. If the previous resistance acts as new support (or previous support acts as new resistance), it indicates strong buying or selling conviction, improves the probability of trend continuation, and provides traders with a lower-risk entry point along with a well-defined stop-loss level.