BALTIMORE (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 highlighted was home health services and hospice services player Gentiva Health Services (GTIV). In "5 Stocks Poised for Breakouts" on Aug. 3, I mentioned that GTIV was approaching a big breakout if it could manage to clear some key overhead resistance levels at $7.24 to $7.33 a share with high volume.
Guess what happened? Shares of GTIV blasted through those overhead resistance levels with monster volume. The stock never looked back, and it went on to skyrocket towards its current price of $10.80 a share. That's a massive move higher in just a few weeks, and one that could have easily been traded with sound disciple in case the trade never triggered.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
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
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV