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The damage reduction is cumulative. It reduces 5 damage from the first hit, 10 from the second, 15 from the third and so on. However, if the spell is recast before its duration ends (possible with an extension of 50% for enchantments) the amount of damage absorbed resets at 5 rather than continuing from the last amount.
After 5-7 sustained hits, this skill outperforms Shielding Hands.