Rounding bottom

A rounding bottom breakout is a bullish technical pattern that forms after a gradual decline followed by a slow recovery, creating a rounded "U" shape on the price chart. When the stock price breaks above the resistance level (the neckline) of the rounding bottom with strong trading volume, it signals that buyers have gained control and a new uptrend may begin. Traders often look for a retest of the breakout level as support before expecting further upside, making it a reliable continuation signal when confirmed by volume.