MADISON, Wis. ( 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 solid breakout trade I flagged recently was Internet radio services provider Pandora Media ( P), which I featured in April 26's " 5 Stocks Poised for Big Breakouts" at around $14.20 a share. I mentioned in that piece that shares of P had recently formed a double bottom chart pattern and the stock was starting to bounce strongly right off its 50-day moving average. That move was quickly pushing shares of P within range of triggering a near-term breakout above some overhead resistance levels that had acted as a wall for the stock for the prior two months. Those resistance levels were at $14.03 to $14.32 and its 52-week high at $14.70 a share.
5 Stocks Setting Up to Break Out
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