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, then it's free to find new buyers and momentum players that can ultimately push the stock significantly higher.>>5 Big Trades to Take Right Now One example of a successful breakout trade I flagged recently was biopharmaceuticals player Sarepta Therapeutics ( SRPT), which I featured in Sept. 16's " 5 Stocks Ready for Breakouts" at around $37.50 a share. I mentioned in that piece that shares of SRPT had recently started to spike back above its 50-day moving average, and that move was quickly pushing the stock within range of triggering a big breakout trade. That trade was set to hit if SRPT managed to take out some near-term overhead resistance at $37.50 to $39.12 a share. Guess what happened? Shares of SRPT didn't wait long to trigger that breakout, since the stock took out those resistance levels on Sept. 20 with monster upside volume. Shares of SRPT tagged a recent high of $49.19 a share, which represents a monster gain of over 30% in just a few days for anyone who played that breakout. This breakout had all the ingredients of success since you had sustained price action through key resistance levels accompanied by big upside volume. >>5 Stocks Under $10 Set to Soar 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 Stocks With Big Insider Buying 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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