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For today's chart we've chosen to take a look at GYI because it is currently in the process of testing the resistance of a descending trendline. The chart below is a good example of how a trendline can act as a strong barrier that prevents the price of an asset from moving higher. Why traders avoid holding a long position when such a trendline is identified on the chart is also apparent. Technical traders would expect this downtrend to continue until the bulls are able to send the stock price back above the dotted resistance.