WINDERMERE, Fla. (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 that can ultimately push the stock significantly higher.One recent example of a successful breakout trade is gold and silver player Northern Dynasty Minerals ( NAK). In Aug. 2's " 5 Stocks Under $10 Ready to Soar Higher, I highlighted how NAK was potentially forming a bottoming chart pattern near $2.20 a share and was quickly setting up to trigger a major breakout trade above $2.50 to $2.94 a share. At the time of that article, NAK was trading at around $2.50 a share. >>5 Stocks Under $10 Set to Soar Guess what happened? Shares of NAK went on to trigger that breakout with strong upside volume flows, and the stock skyrocketed to hit its recent high of $5.40 a share. That's a 100% move in less than two months for anyone who caught that trade. The best part about what NAK did was that you had price, trend and volume all acting together, which is a key set of criteria I look for when I trade breakout candidates. 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. >>5 Blue-Chip Stocks Ready for Buyers 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 trade higher from current levels.
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