WINDERMERE, Fla. ( Stockpickr) -- Trading stocks that trigger major breakouts can lead to massive profits. Once a stock trends to a new high, or takes out a prior overhead resistance point, then it's free to find new buyers and momentum players that can ultimately push the stock significantly higher.
A great example of a powerful breakout that just hit Wall Street today is LiveDeal (LIVE - Get Report). On Thursday, I wrote about the potential for a breakout trade for LiveDeal in my "5 Stocks Under $10 Set to Soar" article. I highlighted how shares of LiveDeal were setting up to trigger a near-term break out above $7.67 a share.
Guess what happened? Shares of LiveDeal triggered that breakout today, and the stock has exploded over 20%, soaring from a low of $7.24 to its intraday high so far of $9.21 a share. That breakout for LIVE has also triggered with heavy volume, since more than 140,000 shares have traded vs. its three-month average volume of 55,014 shares.>>ACTIVE STOCK TRADERS: Check out Stockpickr's special offer for Real Money, headlined by Jim Cramer, now! Trading breakouts is not a new game on Wall Street. This strategy has been mastered by legendary traders such as William O'Neal, Stan Weinstein and Nicolas Darvas. These pros know that once a stock starts to break out above past resistance levels, and hold above those breakout prices, then it can easily trend significantly higher. With that in mind, here's a look at four stocks that are setting up to break out and trade higher from current levels.