Breakdown

A technical signal that a stock’s price is likely to decline further, after it has broken its support level.

Imagine GE’s stock price as a cart on a roller coaster with an unfinished track. For a while, it goes up and down but doesn’t drop to the ground, because it is supported by the track beneath it.

However, once it reaches the end of the track the support ceases, and the stock price has a breakdown, plummeting below the support level.

Now imagine that there wasn’t a toddler on the ride...