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 example of a recent successful breakout trade was personal and household products player PURE Bioscience ( PURE). In " 4 Stocks Under $5 Ripping Higher" on Oct. 9, I highlighted PURE because the stock was bouncing hard with decent volume, and it was quickly pushing within range of triggering a near-term breakout trade above $1.22 to $1.26 a share. I mentioned that PURE looked good for long trade as long as it as trending above $1 and then once it triggered that breakout with volume. I saw huge potential for a big move if that breakout hit. >>5 Stocks Under $10 Set to Soar Guess what happened? The following day, PURE triggered that breakout with strong volume. The stock went on to hit a high of $1.68 a share on Thursday with monster volume. That's a gigantic gain in just a few days for anyone who played that breakout. Shares of PURE have started to cool off today, but traders can still look for more upside if PURE manages to clear $1.68 with strong upside volume soon. 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. >>Buffett's "Secret" Reveals 5 Stocks to Buy 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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