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 who can ultimately push the stock significantly higher.One example of a recent successful breakout trade is independent oil and gas player GMX Resources (GMXR), which I featured in Feb. 26's " 4 Stocks Under $10 Moving Higher" at around $2.16 a share. I mentioned in that piece that shares of GMXR had recently plunged dramatically from $7.50 to $1.80. That move had pushed shares of GMXR into extremely oversold territory, since its relative strength index reading had hit 18.33. I suggested that traders should look for long-biased trades in GMXR as long as it was trading above $1.96 or $1.80, and then once it triggered a breakout above some near-term overhead resistance at $2.50 a share with high volume.
5 Stocks Poised for Breakouts
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