Define: Breakout

UK Accounting Glossary

Definition: Breakout


Full Definition of Breakout

breakout occurs when the price of a stock breaks through a resistance level, often on high volume.

The resistance level is usually a price ceiling at which the stock has previously encountered selling. In many cases, but not always, that resistance level is the highest point in a “handle” portion of a base pattern.

Technical traders will buy the security when a price breakout occurs as it is likely that additional buying pressure will follow.


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Definition Sources

Definitions for Breakout are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd March 2020.