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 example of a successful breakout trade I recently flagged was biotechnology and drugs player Affymax (AFFY), which I featured in Mar. 1's " 5 Stocks Poised for Breakouts" at around $2.66 a share. Shares of AFFY had gapped down huge from $16 to $2.34 a share with massive downside volume. That beat-down pushed shares of AFFY into extremely oversold territory, and AFFY's relative strength index reading hit 11.33. Just because a stock is oversold doesn't mean it will snap back, but experienced traders know that you can get powerful bounces when they do. I told readers to watch for a breakout trade to trigger if AFFY managed to clear some near-term overhead resistance at $2.82 a share with high volume.
5 Stocks Ready to Break Out
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