Breakout and retest is a common price action concept in technical analysis where a stock first breaks above a key resistance level (breakout), indicating potential bullish momentum, and then comes back to that same level to test it again (retest). During the retest, the previous resistance often acts as a new support, and if the price holds above this level and resumes upward movement, it confirms the strength and validity of the breakout. This pattern helps traders avoid false breakouts and provides a better entry point with lower risk and higher probability.