Retest
A return of price to a level it has recently broken through, to see whether that level now holds from the other side.
How it is identified
Test: price returns to within a small band of the broken level after the initial breach
Unit
qualitative
In depth
The retest idea rests on the claim that broken resistance becomes support and broken support becomes resistance, which is an argument about where orders cluster rather than a mechanism in the security itself. Waiting for a retest gives a better entry price and a tighter stop, at the cost of missing the moves that never come back — a genuine trade-off with no universally correct answer. Many breakouts do not retest at all, so a strategy requiring one has a lower participation rate by construction. Whether a retest holds is unknown in advance, and no view on that is expressed here.
Worked example
Price breaks ₹536 and runs to ₹558, then returns to ₹538. An entry there with a stop at ₹528 risks ₹10 a share, against ₹30 for a trader who bought the initial breach at ₹558 with the same stop.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Retest” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.