Concept:
A function is continuous at a point if left-hand limit (LHL), right-hand limit (RHL), and function value are equal. It is differentiable if left-hand derivative (LHD) equals right-hand derivative (RHD).
Step 1: {Definition of $|x|$.}
\[
|x| =
\begin{cases}
x, & x \ge 0 \\
-x, & x<0
\end{cases}
\]
Step 2: {Check continuity at $x=0$.}
LHL:
\[
\lim_{x \to 0^-} |x| = \lim_{x \to 0^-} (-x) = 0
\]
RHL:
\[
\lim_{x \to 0^+} |x| = \lim_{x \to 0^+} x = 0
\]
Function value:
\[
f(0) = |0| = 0
\]
Since LHL = RHL = $f(0)$, the function is continuous at $x=0$.
Step 3: {Check differentiability at $x=0$.}
LHD:
\[
\lim_{h \to 0^-} \frac{|h| - 0}{h} = \lim_{h \to 0^-} \frac{-h}{h} = -1
\]
RHD:
\[
\lim_{h \to 0^+} \frac{|h| - 0}{h} = \lim_{h \to 0^+} \frac{h}{h} = 1
\]
Step 4: {Compare derivatives.}
\[
\text{LHD} = -1 \neq 1 = \text{RHD}
\]
Step 5: {Conclusion.}
Since LHD $\ne$ RHD, the function is not differentiable at $x=0$.
\[
\boxed{\text{$f(x) = |x|$ is continuous but not differentiable at } x=0}
\]