Term:UPSIDE BREAK

An upward break above some form of resistance. Quite often a share’s price will get stuck below a resistance line. When it breaks above this resistance that is known as an “upside break”. Consider the following example of the JSE Overall index:

Upside Break JSE Overall Index - Chart by ShareFriend Pro

Upside Break JSE Overall Index – Chart by ShareFriend Pro

You can see here that the JSE had become trapped below a clear resistance line. After several attempts it then broke cleanly up through the resistance in an upside break. Upside breaks are a bullish signal and the share/index usually climbs strongly once the resistance is broken.

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