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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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.


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


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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.
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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
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'I have oily skin so I spot-treat breakouts with Kiehl's Calendula Facial Wash.
Since 2009, Colleen has developed a line of 100% natural skincare and makeup designed to balance oily skin, prevent clogged pores, and promote faster healing of breakouts. Her creations are cruelty-free, most are vegan, and none contain simple "filler" ingredients that don't contribute to the overall quality of the product.
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While INDA is encouraged by the establishment of these new breakouts, we believe that several additional categories should be adopted to best illustrate the impact of imports on the domestic market.
Following Friday's breakout from the 9,000 barrier, Papa Securities said in a research note that the next barrier would be at 9,160 while 9,200 would be the next psychological resistance.
Combining weekly SkinVacMD[TM] treatments of just 5 minutes with your traditional skin care routine will help you control your breakouts and return your self-confidence.
Mr Cairns says no breakouts have been reported from the plant's No 4 blast furnace in recent years.
The coverage provides hard numbers on sizes of the various registries, the TNC breakouts of banked units, detailed cost breakouts for banking as well as HSCTs utilizing cord blood.
And when it's not pretty, the blotchy, zitty, bumpy breakouts often include not just the skin on your face, but it attacks your back and even your shoulders and chest.
And, yes, we know, sunscreens can bring breakouts ...