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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 ?
Each breakout session, which lasts about 45 minutes, begins with a video that lays out the story for students.
Based on such realistic assumptions, Iran's breakout time under the pending deal actually would be around three months, while its current breakout time is a little under two months.
Second, he says, breakout time is only a gross estimate, not some finely tuned mathematical calculation.
Breakout Labs provides up to USD 350,000 for companies to achieve specific milestones that are critical to their development.
He added: "Progress has been steady since the launch of Breakout in Style late last year, and we've hosted a range of companies, from multi-national corporations such as Novo Nordisk to smaller local companies.
It is important to allow delegates to discuss how the information they have received in the conference applies to them and the breakout areas must provide a great environment in which to do this.
Senior John Weisman, an advertising major who utilizes the breakout rooms for group projects, also likes that the center is open all day; it makes for easier room scheduling.
Breakout Session 1: Consumer Trends Affecting Agri-Food
Mike: My school library has a lot of punk books, so a lot of Breakout came right out of the library.
Breakout sessions with Valerie Wilson Wesley, Virginia DeBerry, Donna Grant and others.
Conference attendees participated in breakout group sessions, during which participants worked together to outline research agendas, opportunities and potential technology barriers for five distinct, forest-industry related topics: