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 Stocks Under $10 Set to Soar One example of a successful breakout trade I flagged recently was games and toy maker Jakks Pacific ( JAKK), which I featured in Sept. 19's " 5 Stocks Under $10 Set to Soar" at around $4.95 a share. I mentioned in that piece that shares of JAKK had been downtrending badly for the last two months, with the stock plunging from its high of $11.75 to its low of $4.82 a share. Following that downtrend, shares of JAKK had started to move sideways and trend within range of a triggering a major breakout trade above $5.08 to $5.27 a share. This sideways pattern was signaling that the downside volatility for JAKK was potentially over. Guess what happened? Shares of JAKK triggered that breakout earlier this week with massive upside volume, after the company released its earnings report. This stock tagged an intraday high of $7.24 a share on Thursday, which represents a gain of close to 50% for anyone who bought this stock under $5 a share prior to this monster move. >>5 Big Stocks to Trade for Big Gains 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 Insiders Love Right Now 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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