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.

North Atlantic Drilling

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One energy stock that's starting to move within range of triggering a big breakout trade is North Atlantic Drilling (NADL) , which operates as an offshore drilling services contractor in the North Atlantic region. This stock has been destroyed by the bears over the last six months, with shares plunging sharply lower by 77.4%.

If you take a look at the chart for North Atlantic Drilling, you'll see that this stock has been attempting to form a major bottoming chart pattern over the last month or so, with shares finding buying interest each time it has dropped just below $1.20 a share. Shares of NADL ripped to the upside on Thursday right above some near-term support at $1.19 a share. That move is now quickly pushing shares of NADL within range of triggering a big breakout trade above some key near-term overhead resistance levels.

Traders should now look for long-biased trades in NADL if it manages to break out above some near-term overhead resistance levels at $1.41a share to its 50-day moving average of $1.51 a share and then above more resistance at $1.53 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 1.26 million shares. If that breakout triggers soon, then NADL will set up to re-test or possibly take out its next major overhead resistance levels at $1.60 to $1.80 a share, or even $2 to $2.20 a share.

Traders can look to buy NADL off weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $1.19 a share. One can also buy NADL 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.

StemCells

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A biotechnology stock that's starting to trend within range of triggering a near-term breakout trade is StemCells (STEM) , which researches, develops and commercializes cell-based therapeutics and related technologies for stem cell-based research and drug discovery and development. This stock has been under some selling pressure of late, with shares dropping by 15.8% over the last six months.

If you take a glance at the chart for StemCells, you'll notice that this stock recently formed a double bottom chart pattern at 96 cents per share. Shares of STEM spiked higher on Thursday right off that support level with decent upside volume compared to its last few trading sessions. That spike to the upside has now pushed shares of STEM within range of triggering a near-term breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in STEM if it manages to break out above some key near-term overhead resistance levels at Thursday's intraday high of $1.01 a share and then above more resistance at $1.07 a share and over its 50-day moving average of $1.10 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 554,844 shares. If that breakout gets started soon, then STEM will set up to re-test or possibly take out its next major overhead resistance levels at $1.20 to $1.25 a share, or even $1.29 to its 200-day moving average of $1.30 a share.

Traders can look to buy STEM off weakness to anticipate that breakout and simply use a stop that sits right below that major near-term support at 96 cents per share. One could also buy STEM 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.

Immunomedics

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Another biopharmaceutical stock that's starting to trend within range of triggering a big breakout trade is Immunomedics (IMMU) - Get Immunomedics, Inc. Report, which focuses on the development of monoclonal antibody-based products for the targeted treatment of cancer, autoimmune and other diseases in the U.S. This stock has been some notable selling pressure over the last three months, with shares off by 16.4%.

If you take a glance at the chart for Immunomedics, you'll see that this stock recently formed a major bottoming chart pattern, after shares held support right above $3.63 a share, which was a level last touch in November. Following that bottom, shares of IMMU have started to uptrend with the stock moving back above its 200-day moving average and within range of its 50-day moving average. That rebound has now pushed shares of IMMU within range of triggering a big breakout trade above a key downtrend line that dates back to February.

Traders should now look for long-biased trades in IMMU if it manages to break out above its 50-day moving average of $4.14 a share and then above some more key overhead resistance levels at $4.31 to $4.36 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 986,052 shares. If that breakout develops soon, then IMMU will set up to re-fill its previous gap-down-day zone from February that started at $5 a share.

Traders can look to buy IMMU off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $3.80 a share. One can also buy IMMU off strength once it starts to move back above those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

AbbVie

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Another health care player that's starting to trend within range of triggering a major breakout trade is AbbVie (ABBV) - Get AbbVie, Inc. Report, which discovers, develops, manufactures and sells pharmaceutical products worldwide. This stock has been sliding lower over the three months, with shares off by 8.3%.

If you take a glance at the chart for AbbVie, you'll notice that this stock formed a W-shaped bottoming chart pattern over the last two months, with shares finding buying interest at $55.18, $54.78 and $56.33 a share. Following that bottom, shares of ABBV have started to rip higher with the stock spiking on Thursday right off both its 50-day and 200-day moving averages. That move is now quickly pushing shares of ABBV within range of triggering a major breakout trade above a key downtrend line that dates back to last December.

Traders should now look for long-biased trades in ABBV if it manages to break out above some key near-term overhead resistance at $60.50 a share and then over more resistance levels at $61.73 to $61.90 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 12.13 million shares. If that breakout materializes soon, then ABBV will set up to re-test or possibly take out its next major overhead resistance levels at $64 to $65 a share, or even $68 to $70 a share.

Traders can look to buy ABBV off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $58 a share or around $56.33 a share. One can also buy ABBV 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.

Stratasys

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My final breakout trading prospect is technology player Stratasys (SSYS) - Get Stratasys Ltd. Report, which provides additive manufacturing solutions for the creation of parts used in the processes of designing and manufacturing products and for the direct manufacture of end parts. This stock has been slapped lower by the bears over the last six months, with shares down sharply by 49.3%.

If you look at the chart for Stratasys, you'll notice that this stock recently formed a major bottoming chart pattern over the last two months, with shares finding buying interest at $51.55 to $51.50 a share. Following that bottom, shares of SSYS have started to uptrend over the last few weeks, with shares moving higher from its low of $51.50 to its intraday high on Thursday of $57.17 a share. That move is now quickly pushing shares of SSYS within range of triggering a major breakout trade above a key downtrend line that dates back to February.

Traders should now look for long-biased trades in SSYS if it manages to break out above some key near-term overhead resistance at $57.50 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 1.43 million shares. If that breakout triggers soon, then SSYS will set up to re-test or possibly take out its next major overhead resistance levels at $60 to $61 a share, or even its 50-day moving average of $61.47 a share to $65 a share.

Traders can look to buy SSYS off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $55 to $54 share. One can also buy SSYS off strength once it starts to spike above those breakout levels with volume and then simply use a stop that sits a conformable percentage from your entry point.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.