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There is an old saying in trading that is very accurate— the moment resistance is broken, its identity is completely reversed, transforming from suppression into support.
Yesterday’s move perfectly exemplified this logic. The initial resistance level was strongly broken through, immediately turning into support and holding off subsequent sell-offs. This is not a short-seller’s counterattack, but a sign that the main force is doing a shakeout at this level—shaking off those retail traders lacking confidence, while also testing how strong the actual support in this area is.
See, being able to precisely retest the previous high and then stop indicates what? It shows that this is indeed a golden demand zone. Not only can it absorb selling pressure, but it also confirms the trend’s direction.
From a technical perspective, a violent breakout combined with precise retesting is a prelude to trend acceleration. The bullish logic chain is very clear: the trend is moving upward, and what needs to be done is to follow the rhythm.