Breakout

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Breakout

A rise in a security's price above a resistance level (commonly its previous high price) or a drop below a level of support (commonly the former lowest price.) A breakout is taken to signify a continuing move in the same direction. Can be used by technical analysts as a buy or sell indicator.

Breakout

1. In technical analysis, a situation in which the price of a security rises above a resistance level. The resistance level is a price above which a security only rarely climbs. This is a highly bullish signal because it indicates the price likely will continue to rise until it finds another resistance level.

2. In technical analysis, a situation in which the price of a security falls below a support level. The support level is a price below which a security only rarely drops. This is a highly bearish signal because it indicates the price likely will continue to fall until it finds another support level.

breakout

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breakout
The advance of a stock price above a resistance level, or the fall of a stock price below a support level. A breakout, especially one on relatively heavy volume, indicates to technicians that the security is about to make a major price movement in the direction indicated by the breakout. Thus, if a breakout is upward, a major upward price movement can be expected. A breakout on relatively low volume is suspect. See also break through, congestion area.

Breakout.

Stock prices fluctuate constantly, but each stock typically moves within a fairly narrow range. That means the stock's average price changes gradually, if at all. But sometimes a stock's price breaks out of its limits, and jumps or tumbles suddenly.

Usually the breakout is fueled by a particular event. The company may realize a commercial success, such as a drug company discovering a new cure for a major disease. Or a breakout may reflect a financial development, such as a new alliance with a successful partner.

References in periodicals archive ?
Discussion: A course without break-outs for which class size is less than or equal to 30 students.
e hairy Houdini then taught other orangutans how to break-out by using a tree branch as a crowbar to force open the doors of the enclosures.
The worst year for break-outs was 2009 when 133 prisoners went missing while the following year 112 escaped.
Break-outs have erupted across the country, with 54 cases recorded in the West Midlands, 99 in Hampshire, 30 in London, and 39 in Cheshire and Merseyside.
Conventional elastomer seals which have proved to last the lifetime of process equipment, or provide leak-free operation between programmed maintenance break-outs may have established their suitability.
Next month, they'll enjoy a recording session with the acclaimed Londoner at the same Shepherd Bush studio which, over the years, has hosted the likes of fellow Valleys break-outs Stereophonics and Manic Street Preachers - before heading off to Switzerland in July to play at the prestigious Montreaux Jazz Festival.
Joe Simpson, spokesman for the POA, said he believed reducing staff by 200 to 380 could lead to attempted break-outs.
A fortnightly deep clean will help prevent skin break-outs and improve application - without affecting the quality of the brushes.
Mean and median hourly rates are included by level of professional for blended and non-blended rates across all firms, along with hourly break-outs for specialists in various categories, including large and boutique strategy specialists; the Big Four and other advisory services firms; operations firms; large and boutique IT consulting specialists, and HR consultancies.
Beat break-outs with Terry's Skin Expert Detox & Rescue.
50, ideal for skin that is prone to break-outs, or Aved a Deep Cleansing Herbal Clay Masque, pounds 19.
In the first half Hector Cuper's men besieged the visitors' goal, while Sir Alex Ferguson's tried to score with small raiding parties on stealthy break-outs.