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.>>5 Stocks Under $10 Set to Soar One example of a successful breakout trade I flagged recently was Stec ( STEC), which I featured in May 31's " 5 Breakout Stocks Ready to Surge Higher" at around $3.60 a share. I mentioned in that piece that STEC had been downtrending badly from its March high of $5.61 to its recent low of $3.32 a share. During that move, the stock was consistently making lower highs and lower lows, which is bearish price action. That said, shares of STEC were just starting to find some buying interest at around $3.40 to $3.50 a share, and it was looking poised to reverse its downtrend and break out and trend higher. That breakout would trigger if STEC managed to take out some near-term overhead resistance levels at its 50-day moving average of $3.81 a share and then above more resistance at $3.90 a share. Guess what happened? Shares of STEC didn't wait long to trigger that breakout after I wrote the piece. The stock bounced around for a few weeks between $3.30 and $3.70 a share, and then on June 21, it closed back above its 50-day moving average. The following trading session saw shares of STEC exploded to the upside by over 80% with monster upside volume. This stock hit an intraday high that day of $6.82 a share, after Western Digital ( WDC) announced that it had entered into a definitive merger agreement under which Western Digital's HGST unit will acquire STEC for $6.85 per share in cash. Breakout traders were rewarded handsomely on this play had they anticipated the move based on attractive chart setup prior to the buyout. >>4 Red-Flag Stocks to Sell This Summer 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. 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. >>5 Stock Charts You Need to See With that in mind, here's a look at five stocks that are setting up to break out and trade higher from current levels.