Failed Break

Failed breaks when a security’s price breaches an established line of support or resistance but falls back due to lack of momentum or any other various number of reasons. After a failed break, a stock’s price fails to move in the direction implied by the breakout, and traders usually close the trade.

Sometimes failed breaks occur at the end of a trend, and the failed break is actually a buying/selling climax.

Failed breaks are also known as “failed breakouts”.