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.An example of a recent successful breakout trade is real estate information player Zillow (Z) which I featured in Jan. 4's " 5 Stocks Poised for Breakouts" at $28.67 a share. I mentioned in that piece that shares of Z were uptrending strong, with the stock making higher lows and higher highs over the prior month. I pointed out that the strong uptrend for Z was pushing the stock within range of triggering a major breakout trade if it could take out some near-term overhead resistance levels at $28.94 to $29.10 a share with high volume. >>5 Stocks Under $10 Poised to Pop Guess what happened? Shares of Z went on to trigger that exact breakout and the upside volume flows that accompanied the move were bullish. This stock has never looked back since breaking out, with shares soaring to its recent high of $37.05 a share. That's a fat gain in a very short timeframe for anyone who took the trade. This stock now has a much tougher path to higher prices, since stiff overhead resistance sits at $38.41 to $39.20 a share. As I write this, Z has started to move back below its 200-day moving average of $35.58 a share, so the stock might be due for a decent pullback after that massive run. 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 Cash-Rich Stocks to Buy in 2013 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. >>5 Stocks With Huge Insider Buying
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