A breakout and retest is a common price action pattern 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. This retest happens because traders who missed the initial move look to enter, while earlier participants confirm the strength of the breakout. If the price holds above the breakout level (in case of upside breakout) or below it (in case of breakdown) and shows buying or selling pressure again, it increases the probability of a sustained move, making the retest a safer entry point compared to chasing the initial breakout.