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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.


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.


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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.


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 ?
We explored the possibility of distinguishing between simple lecture courses without break-outs and those major lecture courses, often taught by a "star professor," in which there is no effective cap on enrollment aside from the capacity of the largest room available to the department at the time the course is offered.
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.
With the score at 33-31, the Famous Grouse Man of the Match - and Player of the Tour - Glenn Metcalfe made the last of many great break-outs from his own half and had Craig Joiner alongside him.
But Mr Lewis says he rejected Mrs Howard's advice and within months was fired, as break-outs at Whitemoor and Parkhurst jails created the need to find a scapegoat.
Anabolic steroids can also cause an increase in oil production by the sebaceous (sweat) glands, causing acne break-outs anywhere on the body, particularly the back.
Clearasil Overnight Serum This is designed to tackle those annoying spot break-outs and fortunately a tell-tale pimple appeared right on cue.
I'd always been afraid of spotty break-outs and greasy skin but contrary to popular belief, it actually has the opposite effect.
HE'S called Buster, he's a notorious hard nut, and he's got a string of daring break-outs to his name.
This can lead to more break-outs, sun sensitivity and the possibility of gene/cell changes.