Supply Zone is one from where extreme sell off happens . It's a zone where the sellers are extremely strong , defeating the buyers and pull the prices down. On this chart , we can see that here has been an extreme sell off from the supply zone , on two instances . This is third time , the price is approaching the Supply Zone/Resistance again with weak sellers. The Supply zone can be considered as a strong brick wall, which doesn't break when hit for the first time / second time. However, generally after 2-3 attempts later, when the same zone is hit multiple times , it becomes weak and hence the brick wall breaks and price gives a breakout. One may observe how the sellers keep getting weaker and weaker at every subsequent retest of the zone. Keep a check on Rec Ltd. in the coming days, any breakout with good volumes , may mean that one can go long !