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 was metal mining player Taseko Mines (TGB). I flagged Taseko in my breakout stocks article on Aug. 24, when it was forming a bottoming chart pattern and starting to uptrend and move into range of breaking out above some near-term overhead resistance levels at $2.67 to $2.89 a share.
Guess what happened? Shares of TGB went on to trigger that breakout with heavy upside volume, and the stock recently hit a high of $3.48 a share. That's a solid move in a very short timeframe, and now TGB is setting up again to breakout over $3.48 to $3.60 a share. If TGB can take out those levels, then it has a chance of re-testing or possibly taking out its next major overhead resistance level at $4.30 a share.Breakout candidates are something that I tweet about on a daily basis. I frequently tweet out high-probability setups, breakout plays and stocks that are acting technically bullish. These are the stocks that often go on to make monster moves to the upside. What's great about breakout trading is that you focus on trend, price and volume. You don't have to concern yourself with anything else. The charts do all the talking. >>5 Big Stocks Ready to Slingshot Higher 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 five stocks that are setting up to break out and trade higher from current levels.