Breakout (redirected from Brick Breaker)
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Related to Brick Breaker: Tetris
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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.