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 successful breakout trade I recently flagged was biotechnology and drugs stock Atossa Genetics (ATOS), which I featured in Mar. 15's " 5 Stocks Poised for Breakouts" at around $7.70 a share. I mentioned in that piece that shares of ATOS had recently formed a double-bottom chart pattern at around $6.10 to $6.20 a share. After marking that bottom, shares of ATOS were starting to rip higher off the double-bottom area, and the stock was quickly moving within range of triggering a major breakout trade. That trade was set to trigger once ATOS cleared some near-term overhead resistance at $8.25 a share and then once it took out its all-time high of $9.45 a share with high volume.
5 Stocks Ready to Break Out
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