DELAFIELD, 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, 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 solar power player SunPower ( SPWR), which I featured in June 7's " 5 Stocks Poised for Breakouts" at around $19.60 a share. I mentioned in that piece that shares of SPWR were forming a major bottoming chart pattern at around $18 a share and just under that level. I said that if SPWR was able to hold just below $18, then this stock looked ready to reverse its recent downtrend and potentially trigger a near-term breakout trade above $19.67 to $20.90 a share. Guess what happened? Shares of SPWR pulled back to just under $18 a share at $17.52 a share, and that pullback never violated its key technical level at its 50-day moving average. After hitting $17.52, shares of SPWR have done nothing but uptrend and triggering that breakout trade I highlighted. This stock has hit a new 52-week high today at $26.80 a share, which represents a gain of over 30% from that $19.60 level had you bought into strength, or a gain of around 50% from the $18 level had you bought the stock into weakness. Either way, anyone who loaded up on SPWR ahead of the breakout has banked some serious in coin during the last month. >>5 Charts to Trade Right Now 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 Dow Dividend Stocks to Beat the S&P With that in mind, here's a look at five stocks that are setting up to break out and trade higher from current levels.
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