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.

NovoCure

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One stock that's starting to trend within range of triggering a near-term breakout trade is NovoCure (NVCR) - Get Report , which develops and commercializes treatment for solid tumor cancers therapy called the tumor treating fields. This stock has been on fire over the last six months, with shares soaring sharply higher by 50.4%.

If you take a look at the chart for NovoCure, you'll notice that this stock has been uptrending strong over the last two months, with shares moving sharply higher off its low of $19.05 to its recent high of $28.65 a share. During that uptrend, shares of NovoCure have been consistently making higher lows and higher highs, which is bullish technical price action. This strong uptrend has now pushed this stock within range of triggering a near-term breakout trade above some key overhead resistance.

Traders should now look for long-biased trades in NovoCure if it manages to break out above some near-term overhead resistance levels at Thursday's intraday high of $28.13 a share and then above more resistance at $28.65 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 557,251 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 level at its all-time high of $30.89 a share. Any high-volume move above that level will then give this stock a chance to make a run at $35 to $40 a share.

Traders can look to buy NovoCure off weakness to anticipate that breakout and simply use a stop that sits right around its 50-day moving average of $24.12 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.

Sorrento Therapeutics

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Another stock that's starting to spike within range of triggering a big breakout trade is Sorrento Therapeutics (SRNE) - Get Report , which focuses on the discovery, acquisition, development and commercialization of proprietary drug therapeutics for addressing unmet medical needs in the U.S., Europe, and internationally. This stock has been smacked lower by the sellers over the last six months, with shares off sharply by 43.2%.

If you take a glance at the chart for Sorrento Therapeutics, you'll notice that this stock has been consolidating and trending sideways over the last month, with shares moving between $7.18 on the downside and $8.62 on the upside. Shares of Sorrento Therapeutics ripped higher on Thursday back above its 20-day moving average of $7.93 a share as the stock showed relative strength versus the overall market weakness. This spike to the upside is now quickly pushing this stock within range of triggering a big breakout trade above the upper-end of its recent sideways trending chart pattern.

Traders should now look for long-biased trades in Sorrento Therapeutics if it manages to break out above some near-term overhead resistance levels at its 50-day moving average of $8.36 a share and then above more key resistance levels at $8.56 to $8.62 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 414,998 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 $10 to $10.71, or even its 200-day moving average of $12.61 a share.

Traders can look to buy Sorrento Therapeutics off weakness to anticipate that breakout and simply use a stop that sits right around its new 52-week low of $7.18 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.

Invivo Therapeutics

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Another stock that's starting to trend within range of triggering a big breakout trade is Invivo Therapeutics (NVIV) - Get Report , which focuses on developing and commercializing technologies for the treatment of spinal cord injury. This stock has been hit hard by the bears over the last six months, with shares plunging lower by 50.7%.

If you take a glance at the chart for Invivo Therapeutics, you'll notice that this stock has recently formed a double bottom chart pattern, after shares found some buying interest over the last two months at $6.78 to $6.55 a share. This stock ripped sharply higher on Thursday right above those support levels with strong upside volume flows. Volume for that day registered over 292,000 shares, which is just above its three-month average action of 277,591 shares. This high-volume move is now quickly pushing shares of Invivo Therapeutics 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 Invivo Therapeutics if it manages to take out both its 50-day moving average of $7.90 a share and its 20-day moving average of $8.11 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 277,591 shares. If that breakout materializes soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at around $9 to $9.50 a share. Any high-volume move through $9.50 will then give this stock a chance to re-fill some of its previous gap-down-day zone from December that started at $11.80 a share.

Traders can look to buy Invivo Therapeutics off weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $7 a share or down near 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 comfortable percentage from your entry point.

Sucampo Pharmaceuticals

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Another biopharmaceutical stock that's starting to move within range of triggering a big breakout trade is Sucampo Pharmaceuticals (SCMP) , which focuses on the research and development of proprietary drugs in the Americas, Europe and Asia. This stock has been slammed lower by the sellers over the last three months, with shares off sharply by 39.7%.

If you take a glance at the chart for Sucampo Pharmaceuticals, you'll see that this displayed some relative strength versus the overall market weakness on Thursday, after shares spiked higher off its 20-day moving average of $16.84 a share with lighter-than-average volume. This counter-trend move higher is now starting to push shares of Sucampo Pharmaceuticals 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 Sucampo Pharmaceuticals if it manages to take out its 50-day moving average of $17.72 a share and then break out above some resistance levels at $18.69 to $18.85 a share and clear its 200-day moving average of $19.26 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 826,634 shares. If that breakout fires off soon, then this stock will set up to re-fill some of its previous gap-down-day zone from November that started at $21.27 a share. Any high-volume move over $21.27 will then give this stock a chance to tag $22 to $25 a share.

Traders can look to buy Sucampo Pharmaceuticals off weakness to anticipate that breakout and simply use a stop that sits right around $16 a share or near its recent low of $15.19 a share. One can also buy this stock off strength once it starts to push above those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Arrowhead Research

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My final breakout trading prospect is biopharmaceutical stock Arrowhead Research (ARWR) - Get Report , which develops novel drugs to treat intractable diseases in the U.S. This stock has been under some notable selling pressure over the last three months, with shares down by 18%.

If you look at the chart for Arrowhead Research, you'll notice that this stock has been uptrending over the last two months and change, with shares moving higher from its low of $4.83 a share to its recent high of $6.45 a share. During that uptrend, this stock has been making mostly higher lows and higher highs, which is bullish technical price action. Shares of Arrowhead Research spiked sharply higher on Thursday right above its 50-day moving average of $5.57 a share and back above its 20-day moving average of $5.85 a share with decent upside volume flows. That move is now quickly pushing 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 Arrowhead Research if it manages to break out above some near-term overhead resistance levels at its 200-day moving average of $6.37 a share and then above more key resistance levels at $6.45 to around $6.70 a share with volume that hits near or above its three-month average action of 1.74 million shares. If that breakout gets started soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $7.50 to $8, or even its 52-week high of $9.36 a share.

Traders can look to buy shares of Arrowhead Research off weakness to anticipate that breakout and simply use a stop that sits right around some key near-term support levels at $5.42 to $5.28 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 conformable percentage from your entry point.

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