MADISON, 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 that can ultimately push the stock significantly higher.One example of a successful breakout trade I recently flagged was Under Armour (UA), which I featured in April 1's " 5 Stocks Poised for Breakouts" at around $51 a share. I mentioned in that piece that UA was modestly uptrending for the prior month, which was bullish technical price action. I pointed out that the uptrend for Under Armour was quickly pushing the stock within range of triggering a breakout trade above some near-term overhead resistance levels at $51.46 to $51.75 a share and then above its 200-day moving average at $51.95 a share. >>5 Stocks Under $10 Set to Soar Guess what happened? Shares of UA didn't wait long to trigger that breakout, since the stock took out all of those resistance levels within a few days. Shares continued to soar higher the rest of the month, hitting a recent high of $58.52 a share. That represents a solid gain in a very short timeframe -- and it shows just how powerful breakout trading can be. Keep in mind, though, that not all breakout trades are going to work, which is why you have to manage to risk at all times when trading this strategy. 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 Big Names to Trade for Earnings Season 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 Hated Earnings Stocks That Deserve Your Love
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