Trendline

A trendline breakdown occurs when the price decisively moves below an important upward-sloping trendline that has been supporting the stock over multiple occasions. It indicates that buying strength is weakening and the existing uptrend may be losing momentum. A breakdown is considered stronger when accompanied by higher volume and a closing price below the trendline; the broken trendline can then act as resistance, with the next support zone becoming the potential downside target.