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Hey rasphd,

Basing is a term used in technical analysis, where investors try to project future movements based on prior stock price movements. I don't know the official definition for a base, but it indicates a price level that a stock has been trading at for a while.

For example, let's say a volatile stock hovers around a specific level, let's say $30, for a few weeks. Technical analysts would say that the stock has developed a base at that level. If the stock starts to move up again -- say jumping to $33 -- the stock would have broken out of its base. I believe the term "break out" usually has a positive connotation. If the stock fell below $30, people would likely say it has fallen through its base.

Hope this helps,

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