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 flagged recently was solar energy player Yingli Green Energy ( YGE), which I featured in April 26's " 5 Stocks Poised for Big Breakouts" at around $2.35 a share. I mentioned then that shares of YGE had been uptrending strong in April, with the stock printing higher lows and higher highs, which is bullish technical price action. That move was starting to push YGE within range of its 50-day moving average, and it was closing in on triggering a near-term breakout trade. That trade was set to trigger once YGE took out some near-term overhead resistance levels at $2.45 to $2.57 a share and then once it cleared more key resistance at $2.65 a share. >>5 Stocks Under $10 Set to Soar Guess what happened? Shares of YGE started to trigger that breakout during the next few trading session, but the stock failed and pulled back to its 200-day moving average at $2.14 a share. That pullback didn't last long, since YGE started to uptrend again and quickly went on to trigger that breakout trade with heavy upside volume. The stock exploded higher last week and hit a new 52-week high of $4.83 a share. That represents an eye-popping gain for anyone who followed the chart and pulled the trigger once YGE took out those key overhead resistance levels with strong upside volume. 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. >>Warren Buffett's 5 Favorite Stocks for 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 Trades to Take as Stocks Soar in May
Harvest Natural Resources
TravelCenters of America
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