A retest occurs when price returns to a previously identified level or zone after moving away from it. Traders often use the term for a revisit after a breakout, although support or resistance can also be tested repeatedly without a preceding break.
Revisiting a broken level
After price rises through resistance near 10 and reaches 12, a return toward 10 is a possible retest of former resistance as support. Conversely, after falling below support near 10 to 8, a rebound toward 10 may test former support as resistance. A retest can therefore approach from above or below; it is not always a downward pullback.
Levels are usually approximate zones. Price need not touch an exact number, and a wick through a zone may be interpreted differently from a candle closing beyond it.
What the response shows
Traders watch whether price holds, rejects, or passes through the area. Holding an initial retest does not guarantee that the next move will continue in the breakout direction. A later revisit may behave differently.
Not every breakout produces a retest, so waiting for one can mean missing a move. The pattern provides a reference for evaluating price behavior, not proof of hidden orders or a risk-free entry.