What happens when a price breaks through a support or resistance level?

When a price breaks through a support or resistance level, it often signals a change in market momentum. Support is a price floor where buyers typically step in; resistance is a ceiling where sellers appear. A break below support suggests weakness and may trigger further selling as stop-loss orders execute, potentially leading to lower prices. Conversely, breaking above resistance can indicate strength and attract new buyers, potentially driving prices higher. However, breaks aren't guaranteed to continue—prices sometimes "fake out" by breaking these levels temporarily before reversing. Traders use these breakouts to make decisions: buying after resistance breaks or selling after support breaks. Volume confirmation matters: breakouts on high volume are generally more reliable than those on low volume.