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 solid breakout trade I flagged recently was Internet radio services provider Pandora Media ( P), which I featured in April 26's " 5 Stocks Poised for Big Breakouts" at around $14.20 a share. I mentioned in that piece that shares of P had recently formed a double bottom chart pattern and the stock was starting to bounce strongly right off its 50-day moving average. That move was quickly pushing shares of P within range of triggering a near-term breakout above some overhead resistance levels that had acted as a wall for the stock for the prior two months. Those resistance levels were at $14.03 to $14.32 and its 52-week high at $14.70 a share. >>5 Stocks Under $10 Set to Soar Guess what happened? Shares of P triggered that breakout the following week, and the stock hit a high of $15.21 a share. This stock pulled back following that breakout to right above its 50-day moving average, and then it resumed its uptrend and broke out again above $15.21 a share with heavy upside volume. This stock continued to soar, with shares hitting a new 52-week high of $17.16 a share earlier this week. That represents a solid gain in very short timeframe for anyone who took the breakout trade. 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 Stocks Trades for S&P 1,700 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 Dividend Stocks That Want to Pay You More
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