chart ready to breakout, page-10

The term stochastic refers to the location of a current price in relation to its price range over a period of time. This method attempts to predict price turning points by comparing the closing price of a security to its price range.
http://en.wikipedia.org/wiki/Stochastic_oscillator

It is a momentum indicator that traders use to time entries and exits into a stock. You can see it on the chart I posted. Right now it is sitting below 20 which means it is oversold, if it was above 80 it would be overbought.