Breakaway Gap Up Breakout — A Powerful Study

This post analyzes breakaway gap up breakouts with multiple chart examples, illustrating how price leaps above well-tested trendline resistance without a retest, triggering strong upward momentum.

Main Report
What is a Breakaway Gap Up Breakout?
A breakaway gap up breakout occurs when the price gaps above a resistance trendline that has been tested multiple times, but instead of interacting with the resistance, the price opens substantially higher, leaving a noticeable gap. This phenomenon signals strong demand and often marks the beginning of a sustained price rally

Chart Observations
- Left-side examples (Godfrey Phillips & JK Lakshmi Cement):
Both charts show prices repeatedly hitting a descending trendline resistance. Unlike typical breakouts, the price did not touch or retest the resistance before breaking out; instead, it jumped above with a clear gap up. This is the classic signature of a breakaway gap. Following the breakout, continuation moves are observed, confirming the bullish momentum.

- Right-side example (Power Grid Corp):
Here, the price similarly clears a major resistance following several rejection points. The breakout is accompanied by a gap and swift follow-up buying, exemplifying the reliability of the breakaway gap pattern

Key Traits of Breakaway Gap Ups
-Occur after prolonged resistance tests.
-Price gaps above resistance without retesting or shadowing.
-Often lead to strong follow-through and trend continuation.
-Frequently signal institutional participation or a major sentiment shift.