A situation in which a security or index trades and closes above a resistance level or below a support level. A technician often interprets a breakout as a confirmation of a market trend and will typically expect the volume, volatility, and momentum triggered by the breakout to correlate with the importance of the resistance or support it penetrated.
Browse by Subjects
trading range
breakaway gap
reverse head and shoulders pattern
bull flag
See All Related Terms »

Dutch auction
Fortune 500 company
closing bell