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.

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.

With that in mind, here's a look at five stocks that are setting up to break out and trade higher from current levels.

Westport Innovations

One engine and powertrain systems player that's quickly moving within range of triggering a big breakout trade is Westport Innovations (WPRT - Get Report) , which provides low-emission engine and fuel system technologies utilizing gaseous fuels. This stock has been destroyed by the bears so far in 2014, with shares down huge by 68%.

If you take a look at the chart for Westport Innovations, you'll notice that this stock has started to stabilize a bit over the last few weeks, after it was downtrending badly for the last four months. That downtrend took shares of WPRT sharply lower from its high of $18.98 to its new 52-week low of $5.29 a share. That said, shares of WPRT have now started to stabilize and trend sideways, with the stock moving between that $5.29 low and around $7 a share. Shares of WPRT are now starting to bounce higher off its recent lows and it's quickly moving within range of triggering a big breakout trade above the upper-end of its recent sideways trading chart pattern.

Traders should now look for long-biased trades in WPRT if it manages to break out above some near-term overhead resistance levels at $6.73 to $7 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 1.03 million shares. If that breakout hits soon, then WPRT will set up to re-test or possibly take out its next major overhead resistance levels at its gap-down-day high from late September at $8.25 a share. Any high-volume move above $8.25 will then give WPRT a chance to re-fill some of that previous gap-down-day zone that started near $11 a share.

Traders can look to buy WPRT off weakness to anticipate that breakout and simply use a stop that sits right around some key near-term support levels at $5.65 to its new 52-week low of $5.29 a share. One can also buy WPRT off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Ocean Rig UDW

A offshore drilling contractor that's starting to move within range of triggering a near-term breakout trade is Ocean Rig UDW (ORIG) , which provides oilfield services for offshore oil and gas exploration, development, and production drilling. This stock has been under selling pressure so far in 2014, with shares down sharply by 28%.

If you take a glance at the chart for Ocean Rig UDW, you'll see that this stock has recently come out of a nasty downtrend, that took the stock sharply lower from its recent high of $19.05 to its low of $11.95 a share. Shares of ORIG have now started to rebound off that $11.95 low with strong upside volume flows. That rebound is now quickly pushing shares of ORIG within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in ORIG if it manages to break out above some near-term overhead resistance levels at $14.14 to $14.50 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 396,994 shares. If that breakout gets started soon, then ORIG will set up to re-test or possibly take out its next major overhead resistance levels at $15.32 to its 50-day moving average of $15.70 a share, or $16.26 to its 200-day moving average of $16.79 a share.

Traders can look to buy ORIG off weakness to anticipate that breakout and simply use a stop that sits right around some key near-term support levels at $13 to $12.77 a share. One could also buy ORIG off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

MakeMyTrip

Another online travel player that's starting to trend within range of triggering a near-term breakout trade is MakeMyTrip (MMYT - Get Report) , which provides travel products and solutions in India and internationally. This stock has been on fire so far in 2014, with shares up sharply by 56%.

If you take a glance at the chart for MakeMyTrip, you'll notice that this stock has been uptrending strong for the last few weeks, with shares moving higher from its low of $21.42 to its intraday high of $30.46 a share. During that uptrend, shares of MMYT have been consistently making higher lows and higher highs, which is bullish technical price action. That move has also pushed shares of MMYT back above both its 50-day and 200-day moving averages, which is bullish. Shares of MMYT are now starting to trend within range of triggering a near-term breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in MMYT if it manages to break out above some key near-term overhead resistance levels at $31 to $32 a share with high volume. Watch for a sustained move or close above those levels with volume that registers near or above its three-month average action of 297,260 shares. If that breakout materializes soon, then MMYT will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $36.12 a share.

Traders can look to buy MMYT off weakness to anticipate that breakout and simply use a stop that sits right around its 50-day moving average of $27.51 a share or near its 200-day moving average of $26.49 a share. One can also buy MMYT off strength once it starts to take out those breakout levels share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

EXCO Resources

Another independent oil and gas player that's starting to trend within range of triggering a near-term breakout trade is EXCO Resources (XCO) , which is engaged in the acquisition, exploration, exploitation, development, and production of onshore oil and natural gas properties with a focus on shale resource plays in the U.S. This stock has been destroyed by the sellers so far in 2014, with shares down huge by 42%.

If you take a glance at the chart for EXCO Resources, you'll see that this stock just came out of a nasty downtrend, that took shares lower over the last four months from its high of $5.90 to its new 52-week low of $2.12 a share. Shares of XCO have now started to reverse that downtrend over the last few weeks, with shares bouncing higher off that $2.12 low to its recent high of $3.39 a share. Shares of XCO are now starting to trend higher here right above some near-term support levels at $2.63 to $2.50 a share, and it's quickly moving within range of triggering a near-term breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in XCO if it manages to break out above some near-term overhead resistance levels at $3.07 to $3.39 a share and then above its 50-day moving average of $3.60 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average volume of 4.52 million shares. If that breakout kicks off soon, then XCO will set up to re-test or possibly take out its next major overhead resistance levels at $4.50 to its 200-day moving average of $4.81 a share.

Traders can look to buy XCO off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $2.63 to $2.50 a share. One can also buy XCO off strength once it starts to bust above those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Portola Pharmaceuticals

My final breakout trading prospect is biotechnology player Portola Pharmaceuticals (PTLA - Get Report) , which develops product candidates in the fields of thrombosis and hematology. This stock has been trending hot over the last six months, with shares up sharply by 20%.

If you look at the chart for Portola Pharmaceuticals, you'll notice that this stock has been uptrending a bit over the last few weeks, with shares moving higher from its low of $24.75 to its recent high of $29.46 a share. During that uptrend, shares of PTLA have been consistently making higher lows and higher highs, which is bullish technical price action. That uptrend has also pushed shares of PTLA back above both its 50-day and 200-day moving averages, which is bullish. Shares of PTLA are now quickly moving within range of triggering a near-term breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in PTLA if it manages to break out above some key near-term overhead resistance levels at $29.46 to $29.48 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 371,011 shares. If that breakout develops soon, then PTLA will set up to re-test or possibly take out its next major overhead resistance level at its all-time high of $31.48 a share. Any high-volume move above its all-time high will then give PTLA a chance to make a run at $35 to $40 a share.

Traders can look to buy PTLA off weakness to anticipate that breakout and simply use a stop that sits right around its 50-day moving average of $26.95 a share or near its 200-day moving average of $25.80 a share. One can also buy PTLA off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a conformable percentage from your entry point.

To see more breakout candidates, check out the Breakout Stocks of the Week portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

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At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.