Breakout

A breakout happens when a stock's price moves decisively above or below a level it's been stuck near for a while. Think of it like a price ceiling or floor that traders have been watching—when the stock finally breaks through it with real volume (meaning lots of shares trading), that's the breakout. You'll hear about breakouts constantly in technical analysis (the study of price patterns) because traders believe breakouts often signal the start of a new trend. For example, if TechCorp stock has bounced between $50–$55 for months, and suddenly jumps to $58 on heavy trading, that's a breakout above resistance. Some investors use breakouts as a signal to buy, betting the momentum continues.