A range breakout in technical analysis occurs when a stock price moves decisively above a defined resistance level or below a support level after trading within a sideways range for some time. This indicates that the balance between buyers and sellers has shifted—either buyers gaining strength in an upward breakout or sellers dominating in a downward breakout. Such breakouts are often accompanied by increased volume, confirming the move and signaling the potential start of a new trend, making it a key opportunity for traders to enter positions in the direction of the breakout.