TheBull.Asia

Wednesday 04

December, 2024 6:51 PM


The Quotes are Powered By Investing.com, the Forex, Futures, and Stock Markets Portal.
Industry Chart

Breakout

foto
What does it mean?

Breakout defines a price move through previously determined areas of resistance or support.

.


foto
TheBull says...

Normally traders would buy the assets when the price breaks above the resistance point (its previous high price) and sell when it breaks below (previous low price). Once a resistance is broken, it will become the next support level. Breakouts are usually followed by large trading volumes of the shares in question and high volatility.

Breakouts are also indicative of potential future evolutions. When a breakout occurs on high volumes of trading, it signals to traders that the respective shares will make key price movements in the direction indicated by the breakout. Thus, if the shares broke a resistance point, the price would go upward, while if the breakout was on a support level, the share price would start to decrease.

Breakouts can be caused by specific events – discovery, development, partnerships and alliances, or financial evolutions (for instance, major discoveries or inventions with high marketing potential, an announcement or anticipation of a partnership merger or a takeover).

.



AUSTRALIAN STOCK QUOTE

Don't know the company code? Click here



Live Forex Prices

PLEASE SUPPORT OUR SPONSORS, ASIA'S LEADING BROKERS:



© Copyright The Bull. All rights reserved.