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 who can ultimately push the stock significantly higher.
One example of a successful breakout trade I flagged recently was China-based wind turbine maker China Ming Yang Wind Power (MY), which I featured in Feb. 26's "5 Stocks Ready to Explode Higher" at $2.86 share. I mentioned in that piece that shares of China Ming Yang Wind Power were starting to spike higher right above its 50-day moving average with monster upside volume. That spike was quickly pushing shares of MY within range of triggering a major breakout trade above some key overhead resistance levels at $2.98 to $3.11 a share.
Guess what happened? Shares of China Ming Yang Wind Power triggered that breakout the following trading session with monster upside volume once again. This stock continued to explode higher into the following week, with shares of MY tagging a new 52-week high of $4.34 a share. That represents a massive gain of just over 50% in a very short timeframe for anyone who snapped up this stock and anticipated the breakout. You can see here what can happen when a stock triggers a breakout with strong upside volume flows.
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.
With that in mind, here's a look at five stocks that are setting up to break out and trade higher from current levels.