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.One recent example of a successful breakout trade that I flagged was biotechnology player Zalicus (ZLCS). I featured the stock in " 5 Stocks Under $10 Set to Soar" on July 26, when it was trading at around $1 per share. I mentioned that if ZLCS managed to hold some near-term support levels at 95 to 88 cents, and then take out some near-term overhead resistance levels at $1.09 to $1.10 a share with volume, then it could spike significantly higher.
5 Stocks Poised for Breakouts
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts