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.

RCS Capital

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One financial stock that's starting to trend within range of triggering a near-term breakout trade is RCS Capital (RCAP) , which is engaged in the wholesale broker-dealer and investment banking and capital markets business activities. This stock has been trending down over the last six months, with shares off sharply by 55%.

If you take a look at the chart for RCS Capital, you'll see that this stock has been attempting to carve out a major bottoming chart pattern over the last two months and change, with shares finding buying interest at $9.26, $9.25, $9.28 and $9.45 a share. Shares of RCAP have now started to bounce higher right above those support levels and it's beginning to move within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in RCAP if it manages to break out above some near-term overhead resistance levels at $10.71 a share to its 50-day moving average of $10.74 a share and then above more resistance at $10.81 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 1.36 million shares. If that breakout gets set off soon, then RCAP will set up to re-test or possibly take out its next major overhead resistance levels at $13.29 to around $14 a share.

Traders can look to buy RCAP off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $9.28 to $9.25 a share. One can also buy RCAP 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.

SunEdison

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A semiconductor stock that's starting to trend within range of triggering a near-term breakout trade is SunEdison (SUNE) , which develops, manufactures and sells silicon wafers to the semiconductor industry. This stock has been in play with the bulls over the last three months, with shares trending to the upside by 18%.

If you take a glance at the chart for SunEdison, you'll see that this stock has been uptrending over the last month and change, with shares moving higher from its low of $17.09 to its intraday high on Thursday of $21.30 a share. During that uptrend, shares of SUNE have been making mostly higher lows and higher highs, which is bullish technical price action. Shares of SUNE flirted with a breakout on Thursday after the stock tested some near-term resistance at $21.15 a share. This move is now quickly pushing shares of SUNE within range of triggering another significant breakout trade.

Traders should now look for long-biased trades in SUNE if it manages to break out above Thursday's intraday high of $21.30 a share and then above more key resistance at $21.59 a 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 11.59 million shares. If that breakout kicks off soon, then SUNE will set up to re-test or possibly take out its next major overhead resistance levels at $23.19 to its 52-week high of $24.35 a share. Any high-volume move over $24.35 will then give SUNE a chance to trend well north of $25 a share.

Traders can look to buy SUNE off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $19.61 a share or just below more near-term support at around $18 a share. One could also buy SUNE off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Rewalk Robotics

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A health care stock that's starting to trend within range of triggering a major breakout trade is Rewalk Robotics (RWLK) - Get Report , which designs, develops and commercializes exoskeletons for wheelchair-bound individuals. This stock has been under heavy selling pressure over the last three months, with shares trading off by 37%.

If you take a glance at the chart for Rewalk Robotics, you'll see that this stock has been downtrending badly for the last three months and change, with shares falling sharply off its high of $33.25 to its recent low of $17.01 a share. During that downtrend, shares of RWLK have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of RWLK are now attempting to carve out a near-term bottom, since the stock has been finding buying interest right above $17 a share. This stock is now starting to bounce higher off that $17 level and it's beginning to move within range of triggering a major breakout trade above a key downtrend line.

Traders should now look for long-biased trades in RWLK if it manages to break out above some key near-term overhead resistance levels at $18.72 a share to its 50-day moving average of $19.99 a share with high volume. Watch for a sustained move or close above those levels with volume that registers near or above its three-month average action of 166,842 shares. If that breakout develops soon, then RWLK will set up to re-test or possibly take out its next major overhead resistance levels at $22.25 to $23.50 a share. Or even $25 to $27.50 a share.

Traders can look to buy RWLK off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at around $17 a share. One can also buy RWLK off strength once it starts to trend above those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Southcross Energy Partners

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Another energy player that's starting to trend within range of triggering a big breakout trade is Southcross Energy Partners (SXE) - Get Report , which provides natural gas gathering, processing, treating, compression and transportation services in the U.S. This stock has been hammered lower by the bears over the last six months, with shares falling sharply lower by 42%.

If you take a glance at the chart for Southcross Energy Partners, you'll notice that this stock has been trending sideways and consolidating over the last month or so, with shares moving between $11.39 on the downside and $12.93 on the upside. This sideways trading chart pattern is occurring after shares of SXE collapsed off its last September high of $21.17 to its recent low of $10.87 a share. Shares of SXE are now starting to spike higher off the lower-end of its range and it's beginning to spike close to trigger a breakout trade above the upper-end of its sideways trending chart pattern.

Traders should now look for long-biased trades in SXE if it manages to break out above some key near-term overhead resistance levels at $12.93 a share to its 50-day moving average of $13.13 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 149,892 shares. If that breakout materializes soon, then SXE will set up to re-test or possibly take out its next major overhead resistance levels at $16 to its 200-day moving average of $17.92 a share.

Traders can look to buy SXE off weakness to anticipate that breakout and simply use a stop that sits right below the lower-end of its recent range at $11.39 a share. One can also buy SXE 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.

Moneygram International

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My final breakout trading prospect is credit services player Moneygram International (MGI) - Get Report , which provides money transfer and payment services in the U.S. and internationally. This stock has been slammed lower by the sellers over the last six months, with shares moving to the downside by 31%.

If you look at the chart for Moneygram International, you'll notice that this stock has been trending sideways and consolidating over the last three months and change, with shares moving between $7.55 on the downside and Thursday's intraday high of $9.58 on the upside. Shares of MGI have now started to trend back above its 50-day moving average of $8.71 a share and it's beginning to move within range of triggering a major breakout trade above the upper-end of its recent sideways trending chart pattern.

Traders should now look for long-biased trades in MGI if it manages to break out above Thursday's intraday high of $9.58 a share and then above its gap-down-day high from last October at around $10 a 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 335,458 shares. If that breakout triggers soon, then MGI will set up to re-fill some of its previous gap-down-day zone from last October that started near $13 a share.

Traders can look to buy MGI off weakness to anticipate that breakout and simply use a stop that sits just below some key near-term support levels at $8.43 a share or just below $8 a share. One can also buy MGI off strength once it starts to clear 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.