A breakout and retest is a common concept in technical analysis where a stock first breaks a key level (like resistance or support) with strong momentum, indicating a potential new trend, and then later comes back to test that same level before continuing in the breakout direction. For example, when price breaks above resistance, that level often becomes new support, and if the stock holds this retest and bounces, it confirms the breakout’s strength and increases the probability of further upside. This pattern helps traders avoid false breakouts and provides a low-risk entry point with better confirmation.