A range breakout and retest occurs when a stock trades between a fixed support and resistance range for a period of time and then breaks above the resistance or below the support with strong momentum. After the breakout, the price often comes back to test the same breakout level again, which is called the retest. If the price holds above the previous resistance (now acting as support) after the retest and buyers step in, it confirms the strength of the breakout and increases the probability of a further move in the breakout direction