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 finally gets broken through. You'll hear traders talk about breakouts because they often signal the start of a new trend—either upward momentum or downward pressure. The idea is that once a price barrier breaks, it tends to keep moving in that direction, at least for a bit. For example, if TechCorp stock has bounced between $50 and $55 for months, and suddenly shoots past $55 on strong volume (lots of shares trading), that's a breakout. Many traders watch for these moments because they can mean bigger price moves ahead, though breakouts don't always pan out as expected.