YATRA The concept that an earlier breakout zone acts as support is based on the principle of role reversal in technical analysis. When a stock breaks above a resistance level with strong momentum, that resistance level often turns into a support zone in the future. This happens because traders who missed the initial breakout look to buy when the price retraces to that level, while existing buyers also defend their positions. As a result, when the price pulls back to the previous breakout zone, buying demand increases and the stock often resumes its upward trend, confirming the strength of the breakout.
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