Breakout in the stock market is a matter that everyone seems to be discussing. That is why we are giving you information about it. Experts say that when the price of a stock goes above (or below) an important level, which is called support or resistance level, breakout usually indicates bullish trend or bearish trend in the market.

First, let us tell you about those stocks where the breakout has happened.
The first stock is ACC-
Current price: Rs 2,030 per share
Expected upward growth of 18.2%
Support: Rs 1,950; Rs 1,900 per share
Resistance: Rs 2,145; Rs 2,180 per share

The second stock is LTTS- L&T Technology Services. The company has released its quarterly results. These have been good. After this, the stock has started running.
Current price: Rs 5,194 per share
Expected upward growth of 12%
Support: Rs 5,090; Rs 5,000 per share
Resistance: Rs 5,440; Rs 5,625 per share

When there is a rise due to a breakout, it means that the stock price has crossed a resistance level and is potentially ready to go to a new high.

Support means… this is the level where the price stops or reverses after falling down.  Resistance means... this is the level where the price stops or starts coming down after moving up.

When a stock breaks the resistance level, it is called a "breakout". Demand and Supply- When the price of a stock breaks the resistance level upwards. So it means that the number of buyers has exceeded the sellers. This increases the demand in the market and the price of the stock goes up rapidly. A real breakout usually has high volume, which shows that investors are trading in that stock in large quantities. If the volume is low, then the breakout may be fake. Why does a breakout lead to a boom? When a stock breaks the resistance  level, it signals investors and traders that the price is going to rise further. Due to this, there is heavy buying and the stock rises. After the breakout, investors start thinking positively about the stock and they start believing that the stock price will rise further. Short covering means… If there are more short positions on the stock, then after the breakout, short sellers start closing their positions. This causes the stock price to rise more rapidly. Trend following means… Experts who evaluate the stock on technical charts say that chart-based traders and institutional investors often buy the stock after the breakout, which takes the stock price further up. How to identify a breakout? Chart Pattern- Breakout usually occurs with chart patterns such as Triangle, Cup & Handle, Double Bottom etc. Price Action: If the price continuously remains near a resistance  level and eventually breaks it, it may be a sign of a breakout. Volume Analysis – If the trading volume is increasing at the time of breakout, it is a sign of a strong breakout.

Relative Strength Index (RSI): RSI and other technical indicators can tell how much strength is there in the market behind the breakout. Let's

understand it like this... Suppose the resistance  level of a stock is ₹ 200 and it has not been able to cross this level for some time. Suddenly, with heavy volume, the price crosses ₹ 200 and reaches ₹ 210.

This is a sign that the stock has had a breakout, and now the price can go further. If the breakout is real, the price can go to ₹ 220, ₹ 230, or even higher.