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. These are also the exact type of stocks that I love to trade and alert to my clients in real-time. I frequently flag 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.

Synergy Pharmaceuticals

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One biopharmaceutical player that's starting to trend within range of triggering a near-term breakout trade is Synergy Pharmaceuticals (SGYP) - Get Report , which focuses on the development and commercialization of novel therapies to treat gastrointestinal diseases and disorders. This stock has been crushed over the last six months, with shares off sharply by 54.6%.

If you take a look at the chart for Synergy Pharmaceuticals, you'll notice that this stock has been downtrending badly over the last five months, with shares falling sharply off its high of $6.58 a share to its new 52-week low of $2.50 a share. During that downtrend, shares of Synergy Pharmaceuticals have been consistently making lower highs and lower lows, which is bearish technical price action. That said, this stock has now started to rebound off that $2.50 low, and it's quickly moving within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in Synergy Pharmaceuticals if it manages to break out above its 20-day moving average of $2.98 a share and then once it clears more key resistance levels at $3 to $3.05 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 2.62 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 its 50-day moving average of $3.34 to $3.50, or even $3.80 to $4 a share.

Traders can look to buy Synergy Pharmaceuticals off weakness to anticipate that breakout and simply use a stop that sits right around its new 52-week low of $2.50 a share. 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.

Chiasma

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A late-stage biopharmaceutical player that's starting to trend within range of triggering a big breakout trade is Chiasma (CHMA) - Get Report , which focuses on developing and commercializing oral forms of therapies for patients suffering from orphan diseases. This stock has been smashed by the sellers over the last six months, with shares down big by 51.4%.

If you take a glance at the chart for Chiasma, you'll notice that this stock ripped sharply higher on Thursday right off its 20-day moving average of $9.79 a share and back above its 50-day moving average of $10 a share with strong upside volume flows. Volume for that trading session registered over 630,000 shares, which is well above its three-month average action of 245,898 shares. That high-volume spike is now quickly pushing shares of Chiasma within range of triggering a big breakout trade above some key near-term overhead resistance levels.

Traders should now look for long-biased trade in Chiasma if it manages to break out above some near-term overhead resistance levels at $11.10 to $11.64 a share and then above more resistance at $11.70 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 245,898 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 $13 to $14, or even $16 to $17 a share.

Traders can look to buy Chiasma off weakness to anticipate that breakout and simply use a stop that sits right around some key near-term support levels at its 20-day moving average of $9.79 a share to around $9 a share. 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.

Tuniu

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A recreational goods player that's starting to spike within range of triggering a big breakout trade is Tuniu (TOUR) - Get Report , which provides online leisure travel services in China. This stock has been hit by the sellers over the last three months, with shares moving lower by 28.5%.

If you take a glance at the chart for Tuniu, you'll notice that this stock has been uptrending strong over the last month or so, with shares moving higher off its new 52-week low of $8.81 a share to its intraday high on Thursday of $11.20 a share. During that uptrend, shares of Tuniu have been making mostly higher lows and higher highs, which is bullish technical price action. This move has now pushed this stock 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 Tuniu if it manages to break out above some near-term overhead resistance levels at Thursday's intraday high of $11.20 a share to more key resistance levels at $11.46 to around $11.75 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 415,256 shares. If that breakout takes hold soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $12.50 to $13, or even $13,67 to its 200-day moving average of $13.75 a share.

Traders can look to buy Tuniu off weakness to anticipate that breakout and simply use a stop that sits right around its 20-day moving average of $10.20 a share or near more key support at $9.61 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 comfortable percentage from your entry point.

aTyr Pharma

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Another stock that's starting to trend within range of triggering a near-term breakout trade is aTyr Pharma (LIFE) - Get Report , which engages in the discovery and clinical development of Physiocrine-based therapeutics for patients suffering from severe and rare diseases. This stock has been destroyed by the bears over the last six months, with shares off huge by 71.5%.

If you take a glance at the chart for aTyr Pharma, you'll notice that this stock has been downtrending badly over the last month or so, with shares falling sharply off its high of $6.41 a share to its new 52-week low hit on Thursday at $3.04 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 aTyr Pharma trended up modestly on Thursday with monster upside volume flows. Volume for that trading session registered over 2 million shares, which is well above its three-month average action of 173,553 shares. This high-volume move to the upside is now quickly pushing this stock within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in aTyr Pharma if it manages to break out above Thursday's intraday high of $3.31 a share and then above more key resistance levels at $3.50 to $3.66 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 173,553 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 around $4 to $4.20, or even its 20-day moving average of $4.73 a share.

Traders can look to buy aTyr Pharma off weakness to anticipate that breakout and simply use a stop that sits right around its new 52-week low of $3.04 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.

Chimerix

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My final breakout trading prospect is biopharmaceutical player Chimerix (CMRX) - Get Report , which discovers, develops and commercializes oral antivirals in the areas of unmet medical needs in the U.S. This stock has been destroyed by the bears over the last six months, with shares plunging lower by 85.3%.

If you look at the chart for Chimerix, you'll notice that this stock recently formed a double bottom chart pattern, after shares found some buying interest at $4.76 to $4.62 a share. Following that potential bottom, shares of Chimerix have now started to spike higher right above its 20-day moving average of $5.14 a share, 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 Chimerix if it manages to break out above Thursday's intraday high of $5.74 a share to its 50-day moving average of $5.85 a share with volume that hits near or above its three-month average action of 2.52 million shares. If that breakout gets started soon, then this stock will set up to re-fill some of its previous gap-down-day zone from February that started near $8 a share. If this stock clears $8 a share with volume, then it could potentially make a run at its next major overhead resistance levels at $9.34 to $9.75 a share.

Traders can look to buy shares of Chimerix off weakness to anticipate that breakout and simply use a stop that sits right below its 20-day moving average of $5.14 a share, or around those recent double bottom support levels. 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 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.