Buy Break

Buy Break - A buy break is an investment strategy that some investors use to gauge when to buy a stock. The investor believes that when a stock passes a certain resistance level, which is an inability for a stock to increase past a certain level, that they have calculated to be so during a technical analysis of the stock. Once the stock has surpassed this level, it is believed to be an indication that the stock will most likely continue to increase and therefore it should be an extremely smart investment opportunity, which is not always the case. It is a gamble at best.