DELAFIELD, Wis. (Stockpickr) -- No matter which way the market is trending on a day-to-day basis, there's always some sector or some chart that has a potentially explosive pattern developing. Once you know which setups to look for from a technical standpoint, then you can develop a watch list of stocks that could be setting up to make some amazing moves.
One of my recent explosive chart ideas that's exploding higher today is Plug Power (PLUG), which I featured in Feb. 12's "5 Stocks Ready to Explode Higher" at $3.77 share. I mentioned in that piece that shares of PLUG were uptrending strong, with the stock consistently making higher lows and higher highs, which is bullish technical price action. That uptrend was starting to push shares of PLUG within range of triggering a major breakout trade above some key overhead resistance levels.
Shares of PLUG took out the first key resistance level today after the stock gapped sharply higher above $4.20 a share with monster upside volume. Volume so far has already registered over 38 million shares, which is well above its three-month average action of 22.3 million shares. Shares of PLUG are higher by over 15% here with the stock trading near $4.50, but I don't think this stock is anywhere near done going higher. Traders should now watch for the second key resistance level to get taken out at its 52-week high of $4.90 a share. A close above that level with high volume should prepare PLUG for a run towards $8 to $10 a share.
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Here's a look at five stocks that have with potentially explosive chart patterns.