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.

Resolute Forest Products

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One stock that's starting to rip within range of triggering a major breakout trade is Resolute Forest Products (RFP) - Get Report, which operates in the forest products industry in the U.S., Canada and South Korea. This stock has been pounded lower by the bears over the last six months, with shares off sharply by 42.1%.

If you take a look at the chart for Resolute Forest Products, you'll notice that this stock has been downtrending badly over the last six months, with shares plunging sharply lower from its highs at around $19 to its new 52-week low of $8.87 a share. During that downtrend, shares of Resolute Forest Products have been consistently making lower highs and lower lows, which is bearish technical price action. That said, this stock rebounded sharply higher on Thursday right off a major trendline, and it's now 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 Resolute Forest Products if it manages to break out above some key near-term overhead resistance levels at its 20-day moving average of $9.94 and then above more key resistance at $10.14 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 750,106 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 its 50-day moving average of $11.03 to $12.07, or even $12.64 to $13 a share.

Traders can look to buy Resolute Forest Products off weakness to anticipate that breakout and simply use a stop that sits right around its new 52-week low of $8.87 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.

Signal Genetics

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A health care stock that's starting to trend within range of triggering a near-term breakout trade is Signal Genetics (SGNL) , which focuses on providing diagnostic services that assist physicians in decision making for the care of patients suffering from cancer. This stock has been slammed lower by the bears over the last six months, with shares down sharply by 39.5%.

If you take a glance at the chart for Signal Genetics, you'll notice that this stock has been attempting to carve out a major bottoming chart pattern over the last two months, with this stock finding significant buying interest every time it has pulled back to around $1.50 or close to $1.48 to $1.42 a share. Shares of Signal Genetics spiked sharply to the upside on Thursday right above some near-term support at $1.52 a share with lighter-than-average volume. That pop is now quickly pushing this stock within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in Signal Genetics if it manages to break out above some key near-term overhead resistance levels at $1.76 to its 20-day moving average of $1.84 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 697,322 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 $2.15 to its 200-day moving average of $2.37, or even $2.73 to $2.94 a share.

Traders can look to buy Signal Genetics off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $1.50 a share. One could 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.

Corbus Pharmaceuticals

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Another stock that's starting to spike within range of triggering a big breakout trade is Corbus Pharmaceuticals (CRBP) - Get Report, which focuses on the development and commercialization of novel therapeutics to treat rare life-threatening inflammatory and fibrotic diseases. This stock has been slammed lower by the sellers over the last three months, with shares off sharply by 36.8%.

If you take a glance at the chart for Corbus Pharmaceuticals, you'll notice that this stock has been downtrending badly over the last three months, with shares plunging lower off its high of $4.31 to its new 52-week low of $1.88 a share. During that downtrend, shares of Corbus Pharmaceuticals have been making mostly lower highs and lower lows, which is bearish technical price action. That said, this stock has now entered extremely oversold territory, since its current relative strength index reading is 20.7. Oversold can always get more oversold, but this has already started to rebound higher with strong upside volume flows.

Traders should now look for long-biased trades in Corbus Pharmaceuticals if it manages to break out above some key near-term overhead resistance levels at $2.06 to $2.09 a share and then above more resistance around $2.40 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 121,384 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 its 20-day moving average of $2.73 to $2.80, or even its 50-day moving average of $3.06 a share.

Traders can look to buy Corbus Pharmaceuticals off weakness to anticipate that breakout and simply use a stop that sits right below Thursday's low of $1.92 or around its new 52-week low of $1.88 a share. One can 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.

OncoMed Pharmaceuticals

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Another clinical development-stage biotechnology player that's starting to rip higher within range of triggering a near-term breakout trade is OncoMed Pharmaceuticals (OMED) - Get Report, which discovers and develops protein therapeutics targeting cancer stem cells. This stock is down modestly over the last six months, with shares off by just 5.1%.

If you take a glance at the chart for OncoMed Pharmaceuticals, you'll see that this stock recently formed a double bottom chart pattern at $19.54 to $19.58 a share. Following that bottom, shares of OncoMed Pharmaceuticals spiked sharply higher on Thursday back above its 20-day moving average of $21.13 with slightly above-average volume. That spike is now quickly pushing shares of OncoMed Pharmaceuticals within range of triggering a near-term breakout trade above a key downtrend line.

Traders should now look for long-biased trades in OncoMed Pharmaceuticals if it manages to break out above that key downtrend line that will trigger above some near-term overhead resistance levels at $22.15 to $22.40 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 129,892 shares. If that breakout gets set 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 $23.03 to its 200-day moving average of $23.43 a share. Any high-volume move above those levels will then give this stock a chance to tag its next major overhead resistance levels at $25 to $26.72 a share.

Traders can look to buy OncoMed Pharmaceuticals off weakness to anticipate that breakout and simply use a stop that sits right around $20 a share or even near those recent double bottom support levels. One can 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.

Wynn Resorts

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My final breakout trading prospect is resorts and casino player Wynn Resorts (WYNN) - Get Report, which develops, owns and operates destination casino resorts. This stock has been smacked lower by the sellers over the last six months, with shares off sharply by 29.6%.

If you look at the chart for Wynn Resorts, you'll notice that this stock spiked sharply higher on Thursday back above both its 50-day moving average of $102.77 a share and its 20-day moving average of $103.15 a share with heavy upside volume flows. Volume on Thursday registered over 5 million shares, which is well above its three-month average action of 2.55 million shares. This high-volume spike to the upside for Wynn Resorts is now quickly pushing this stock within range of triggering a big breakout trade above a key downtrend line that dates back to April.

Traders should now look for long-biased trades in Wynn Resorts if it manages to take out that downtrend line that will trigger above some key near-term overhead resistance levels at $105 to $105.65 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 2.55 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 $110 to $112, or even around $120 a share.

Traders can look to buy Wynn Resorts off weakness to anticipate that breakout and simply use a stop that sits just below some key near-term support at $100 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 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.