A breakout in technical analysis refers to the price of a stock moving above a significant resistance level or below a support level with increased volume, signaling the potential start of a new trend. Breakouts often indicate that market participants have accepted a new price level, leading to stronger momentum in the breakout direction. In the weekly chart of TCS (Tata Consultancy Services), we can observe a long consolidation phase where the price was repeatedly rejected near a horizontal resistance line. Once the breakout occurred above this resistance, the stock entered a strong bullish rally, confirming the breakout and suggesting a major shift in market sentiment.
TCS
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