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, it's free to find new buyers and momentum players which can ultimately push the stock significantly higher.

Breakout candidates are ones that I tweet about on a daily basis. These are also the exact type of stocks I love to trade.

I frequently flag high-probability setups, which are breakout plays and stocks that are acting technically bullish. These are the ones that often make monster moves to the upside. What's great about breakout trading is that you only focus on trends, price and volume. You don't have to concern yourself with anything else. The charts do all the talking.

Trading breakouts are 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, 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.

Bellicum Pharmaceuticals

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One clinical stage biopharmaceutical player that's starting to spike within range of triggering a big breakout trade is Bellicum Pharmaceuticals(BLCM) - Get Report , which focuses on discovering and developing novel cellular immunotherapies for the treatment of hematological cancers, solid tumors, and orphan inherited blood disorders in the U.S. and internationally. This stock has been under notable selling pressure over the last six months, with shares dropping by 18.9%.

If you take a look at the chart for Bellicum Pharmaceuticals, you'll notice that this stock recently formed a double bottom chart pattern, after shares found some buying interest at $11.76 to $11.65 a share over the last few weeks. Following that potential bottom, shares of Bellicum Pharmaceuticals have now started to spike sharply higher and flirt with its 20-day moving average of $13.09 a share. That spike is quickly pushing this stock within range of triggering a big breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in Bellicum Pharmaceuticals if it manages to break out above some near-term overhead resistance levels at $13.50 to $13.65 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 335,037 shares. If that breakout fires off soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $14.99 a share to its 200-day moving average of $15.43 a share, or even $16.50 to $17 a share.

Traders can look to buy Bellicum Pharmaceuticals off weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $12 or around those recent double bottom support levels. One can also buy this stock 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.

Nutanix

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A technology player that's starting to spike within range of triggering a big breakout trade in Nutanix(NTNX) - Get Report , which provides enterprise cloud platform solutions that converge traditional silos of server, virtualization, and storage into one integrated solution. This stock has been hit by the sellers over the last six months, with shares trading off by 17.2%.

If you take a glance at the chart for Nutanix, you'll notice that this stock recently formed a double bottom chart pattern, after shares found some buying interest at $28.01 to $28.36 a share over the last few weeks. Following that potential bottom, this stock has now started to rip higher right off both its 50-day moving average of $29.08 a share and its 20-day moving average of $29.64 a share. That bump to the upside is now quickly pushing shares of Nutanix within range of triggering a big breakout trade.

Traders should now look for long-biased trade in Nutanix if it manages to break out above some near-term overhead resistance levels at $31 to $32.89 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 1.21 million shares. If that breakout hits soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $35 to $36, or even $40 to $43 a share.

Traders can look to buy Nutanix off weakness to anticipate that breakout and simply use a stop that sits right below those recent double bottom support levels. One could also buy this stock 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.

Twilio

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Another technology player that's starting to trend within range of triggering a near-term breakout trade is Twilio(TWLO) - Get Report , which provides cloud communications platform that enables developers to build, scale, and operate communications within software applications through the cloud as a pay-as-you-go service in the U.S. and internationally. This stock has been smacked lower by the sellers over the last six months, with shares dropping by 20.6%.

If you take a glance at the chart of Twilio, you'll notice that this stock has been uptrending a bit over the last month and change, with shares moving higher off its low of $25.98 a share to its recent high of $30.50 a share. During that uptrend, this stock has been making mostly higher lows and higher highs, which is bullish technical price action. That uptrend has also pushed shares of Twilio back above both its 20-day moving average and 50-day moving average, and it's quickly moving the stock within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in Twilio if it manages to break out above some near-term overhead resistance levels at $30.50 to around $31 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 4.65 million shares. If that breakout triggers soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $33 to $35, or even $37.50 to $39 a share.

Traders can look to buy Twilio off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $28.28 or at $27 a share. One can also buy this stock 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.

Ascena Retail Group

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Another apparel stores player that's starting to trend within range of triggering a big breakout trade is Ascena Retail Group(ASNA) - Get Report , which operates as a specialty retailer of apparel, shoes, and accessories for women and tween girls in the U.S., Canada, and Puerto Rico. This stock has been smashed lower by the bears over the last six months, with shares falling sharply by 32.6%.

If you take a glance at the chart for Ascena Retail Group, you'll notice that this stock has been downtrending badly over the last two months and change, with shares falling sharply off its high of $8.19 a share to its new 52-week low of $4.44 a share. During that downtrend, this stock has been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of Ascena Retail Group have now started to rebound notably higher off that $4.44 low, and it's quickly trending within range of triggering a big breakout trade above some key near-term resistance levels.

Traders should now look for long-biased trades in Ascena Retail Group if it manages to break out above some near-term overhead resistance levels at $5.07 to its 20-day moving average of $5.12 a share and then above more resistance at $5.19 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 4.70 million shares. If that breakout kicks off soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $5.94 to its 50-day moving average of $6.14 a share, or even $6.61 to its 200-day moving average of $6.85 a share.

Traders can look to buy Ascena Retail Group off weakness to anticipate that breakout and simply use a stop that sits right around its new 52-week low of $4.44 a share. One can also buy this stock 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.

Intern

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My final breakout trading prospect is biotechnology player Intrexon(XON) - Get Report , which operates in the synthetic biology field in the U.S. This stock has been hit hard by the bears over the last six months, with shares dropping sharply by 23.9%.

If you look at the chart for Intrexon, you'll notice that this stock has been downtrending badly over the last three months, with shares falling sharply off its high of $32.58 a share to its new 52-week low of $20.39 a share. During that downtrend, this stock has been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of Intrexon have now started to bounce a bit higher off that $20.39 low with heavy upside volume flows. That high-volume bounce is now quickly pushing this stock within range of triggering a near-term breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in Intrexon if it manages to break out above some near-term overhead resistance levels at $22 to $22.50 a share and then above its 20-day moving average of $23.10 a share with volume that hits near or above its three-month average action of 1.34 million shares. If that breakout develops soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $25 to its 50-day moving average of $25.91 a share, or even its 200-day moving average of $26.53 a share to around $29 a share.

Traders can look to buy shares of Intrexon off weakness to anticipate that breakout and simply use a stop that sits right below its new 52-week low of $20.39 a share. One can also buy this stock off strength once it starts to move 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.