DELAFIELD, 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 who can ultimately push the stock significantly higher.

Breakout candidates are something that I tweet about on a daily basis. I frequently tweet out high-probability setups, breakout plays and stocks that are acting technically bullish. These are the stocks that often go on to make monster moves to the upside. What's great about breakout trading is that you focus on trend, price and volume. You don't have to concern yourself with anything else. The charts do all the talking.

Trading breakouts is not a new game on Wall Street. This strategy has been mastered by legendary traders such as William O'Neal, Stan Weinstein and Nicolas Darvas. These pros know that once a stock starts to break out above past resistance levels and hold above those breakout prices, then it can easily trend significantly higher.

With that in mind, here's a look at five stocks that are setting up to break out and possibly trade higher from current levels.

Alcobra

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One biopharmaceutical player that's starting to move within range of triggering a major breakout trade is Alcobra (ADHD) , which focuses on the development and commercialization of proprietary drug candidates. This stock has been destroyed by the sellers over the last six months, with shares down huge by 63%.

If you take a look at the chart for Alcobra, you'll see that this stock has been uptrending strong over the last three months, with shares moving higher from its low of $3.64 to its recent high of $7.93 a share. During that uptrend, shares of ADHD have been making mostly higher lows and higher highs, which is bullish technical price action. Shares of ADHD bounced higher on Thursday right above some near-term support at $7.06 a share. That bounce is now quickly pushing shares of ADHD within range of triggering a major breakout trade.

Traders should now look for long-biased trades in ADHD if it manages to break out above some near-term overhead resistance levels at $7.93 a share to its gap-down-day high from last October around $8 a share with high volume. Look for a sustained move or close above those levels with volume hits near or above its three-month average action of 301,321 shares. If that breakout hits soon, then ADHD will set up to re-fill some of its previous gap-down-day zone from last October that started near $16 a share.

Traders can look to buy ADHD off weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $7.06 a share. One can also buy ADHD off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

ChannelAdvisor

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A application software player that's starting to trend within range of triggering a major breakout trade is ChannelAdvisor (ECOM) - Get Report , which provides software-as-a-service solutions worldwide. This stock has been hit hard by the sellers over the last six months, with shares off sharply by 39%.

If you take a glance at the chart for ChannelAdvisor, you'll notice that this stock gapped down sharply in January from around $22 a share to around $9 a share with heavy downside volume. Following that move, shares of ECOM went on to print a new 52-week low of $8.22 a share. This stock has now started to rebound off that $8.22 low and it's quickly moving within range of triggering a major breakout trade above some key near-term overhead resistance levels.

Traders should now look for long-biased trades in ECOM if it manages to break out above Thursday's intraday high of $10.14 a share and then above its gap-down-day high from January at $10.50 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 598,903 shares. If that breakout develops soon, then ECOM will set up to re-fill some of its previous gap-down-day zone from last January that started near $22 a share.

Traders can look to buy ECOM off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $9.28 a share, or right below $9 a share. One could also buy ECOM off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Aurinia Pharmaceuticals

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Another biopharmaceutical stock that's starting to rip within range of triggering a big breakout trade is Aurinia Pharmaceuticals (AUPH) - Get Report , which is engaged in the development of a therapeutic drug to treat autoimmune diseases in Canada. This stock has been trending up over the last six months, with shares higher by around 19%.

If you take a glance at the chart for Aurinia Pharmaceuticals, you'll see that this stock ripped sharply higher on Thursday right off both its 50-day moving average of $3.58 a share and its 200-day moving average off $3.60 a share with heavy upside volume. Volume on the day registered over 130,000 shares, which is well above its three-month average action of 23,256 a shares. That spike also pushed shares of AUPH into breakout territory, since the stock cleared some key overhead resistance levels at $3.90 to $3.96 a share and $4.05 a share. Now shares of AUPH are quickly moving within range of triggering another big breakout trade.

Traders should now look for long-biased trades in AUPH if it manages to break out above Thursday's intraday high of $4.14 a share and then above some past resistance levels at $4.35 to $4.40 a share with high volume. Watch for a sustained move or close above those levels with volume that hits near or above its three-month average action of 23,256 shares. If that breakout kicks off soon, then AUPH will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $5.39 a share. Any high-volume move above that level will then give AUPH a chance to tag or take out $6 a share.

Traders can look to buy AUPH off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $3.50 or $3.35 a share. One can also buy AUPH off strength once it starts to bust above those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Xoom

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Another stock that's starting to trend within range of triggering a big breakout trade is Xoom (XOOM) , which provides digital consumer-to-consumer online money transfer services in the U.S. and internationally. This stock has been trending to the upside over the last three months, with shares notably higher by 20.8%.

If you take a glance at the chart for Xoom, you'll see that this stock spiked higher on Thursday right above its 50-day moving average of $16.12 a share with strong upside volume flows. Volume on the day registered 1.11 million shares, which is well above its three-month average action of 505,020 shares. That spike also briefly pushed shares of XOOM into breakout territory, since the stock flirted with some near-term overhead resistance at $17.01 a share. This stock is now starting to trend within range of triggering a much bigger breakout trade above some key near-term overhead resistance levels.

Traders should now look for long-biased trades in XOOM if it manages to break out above Thursday's intraday high of $17.07 a share and then above some major overhead resistance at $17.93 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 505,020 shares. If that breakout materializes soon, then XOOM will set up to re-fill its previous gap-down-day zone from last October that started near $20 a share. Any high-volume move above $20 will then give XOOM a chance to tag $23 to $25 a share.

Traders can look to buy XOOM off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $15.94 to $15 a share. One can also buy XOOM off strength once it starts to take out hose breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

My final breakout trading prospect is clinical-stage biopharmaceutical stock Sophiris Bio (SPHS) - Get Report , which focuses on the research, development and commercialization of products for the treatment of urological diseases. This stock has been destroyed by the sellers over the last six months, with shares down massive by 85%.

If you look at the chart for Sophiris Bio, you'll see that this stock has been consolidating and trending sideways over the last two months and change, with shares moving between 42 cents on the downside and 58 cents on the upside. Shares of SPHS spiked notably higher on Thursday back above its 50-day moving average of 48 cents per share. That spike is now starting to push shares of SPHS within range of triggering a big breakout trade above the upper-end of its recent sideways trading chart pattern.

Traders should now look for long-biased trades in SPHS if it manages to break out above Thursday's intraday high of 50 cents per share and then above some key near-term overhead resistance levels at 53 cents to 58 cents per share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 383,339 shares. If that breakout begins soon, then SPHS will set up for a possible run back towards $1 a share.

Traders can look to buy SPHS off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at 45 cents to 42 cents per share. One can also buy SPHS off strength once it starts to jump above those breakout levels with volume and then simply use a stop that sits a conformable percentage from your entry point.

-- Written by Roberto Pedone in Delafield, Wis.

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At the time of publication, author had no positions in stocks mentioned. Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.