Breakout (technical analysis)
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A breakout is when prices pass through and stay through an area of support or resistance.
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1. A security represents the fair market value as agreed between buyers and sellers i.e. bulls and bears.
2.Change in the prices are the results change in investors expectations of securities future price.
3.Support level occurs when bulls take control of price move and not allow security prices to go down.
4.Resistance level occurs when the bears take control of the price move and not allow the security prices to move up.
5.The penetration of support level or resistance level indicates change in investors expectaion and shift in supply demand line. i.e. whenever support level get penetrated it become resistance level and vice versa
