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 look ready to break out and trade higher from current levels.

Constellium


One metal fabrication player that's starting to move within range of triggering a big breakout trade is Constellium (CSTM) , which is engaged in the design, manufacture and sale of specialty rolled and extruded aluminum products. This stock has been hammered lower over the last six months, with shares down sharply by 46%.

If you take a look at the chart for Constellium, you'll notice that this stock has been trying to carve out a bottom over the last month and change, with shares finding buying interest each time its dipped just under $16 a share. Shares of CSTM are now starting to spike modestly higher off some near-term support levels at around $16 a share and are beginning to move within range of triggering a big breakout trade above some key near-term overhead resistance levels.

Traders should now look for long-biased trades in CSTM if it manages to break out above some near-term overhead resistance levels at $17.33 a share to its 50-day at $17.73 a share and then above more resistance at $18.34 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 1.35 million shares. If that breakout hits soon, then CSTM will set up to re-test or possibly take out its next major overhead resistance levels at $21 to $22 a share, or even $24 a share.

Traders can look to buy CSTM off weakness to anticipate that breakout and simply use a stop that sits right below some near-term support levels at $15.81 a share or around its 52-week low of $15.25 a share. One can also buy CSTM 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.

Hutchinson Technology


A technology player that's starting to trend within range of triggering a big breakout trade is Hutchinson Technology (HTCH) , which researches, designs, develops, manufactures and supplies suspension assemblies for hard disk drives in Thailand, Hong Kong, the Philippines, Malaysia and the U.S.. This stock has been red hot over the last six months, with shares soaring sharply higher by 69%.

If you take a glance at the chart for Hutchinson Technology, you'll see that this stock has been consolidating and trending sideways over the last three months, with shares moving between $3.30 on the downside and $3.93 on the upside. Shares of HTCH have now started to spike sharply higher back above its 50-day moving average of $3.55 a share with strong upside volume flows. Volume on Last Friday registered 2.96 million shares, which is well above its three-month average action of 280,757 shares. That spike is now quickly pushing shares of HTCH within range of triggering a big breakout trade above the upper-end of its recent sideways trending chart pattern.

Traders should now look for long-biased trades in HTCH if it manages to break out above some near-term overhead resistance levels at $3.74 to $3.79 a share and then above more key overhead resistance at $3.93 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 280,757 shares. If that breakout develops soon, then HTCH will set up to re-test or possibly take out its next major overhead resistance levels at $4.60 to its 52-week high at $4.85 a share. Any high-volume move above those levels will then give HTCH a chance to make a run at $5.50 to $6 a share.

Traders can look to buy HTCH off weakness to anticipate that breakout and simply use a stop that sits right around some key near-term support levels at $3.30 to its 200-day moving average of $3.10 a share. One could also buy HTCH off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Akebia Therapeutics


Another biopharmaceutical player that's starting to spike within range of triggering a near-term breakout trade is Akebia Therapeutics (AKBA - Get Report) , which focuses on the development and commercialization of proprietary therapeutics based on hypoxia inducible factor biology for patients with kidney disease. This stock has been hit hard by the bears over the last six months, with shares trending sharply lower by 53%.

If you take a glance at the chart for Akebia Therapeutics, you'll see that this stock has been consolidating and trending sideways for the last month and change, with shares moving between $10.15 on the downside and around $12.50 on the upside. Shares of AKBA have now started to spike higher off some key near-term support levels at $10.56 to $10.78 a share. That spike is quickly pushing shares of AKBA within range of triggering a breakout trade above the upper-end of its recent sideways trading chart pattern.

Traders should now look for long-biased trades in AKBA if it manages to break out above its 50-day moving average of $11.81 a share and then once it clears some more key near-term overhead resistance levels at $12 to $12.15 and just above $12.50 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 242,813 shares. If that breakout gets going soon, then AKBA will set up to re-test or possibly take out its next major overhead resistance levels at $15.50 to $18 a share.

Traders can look to buy AKBA off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $10.50 a share or around $10.15 a share. One can also buy AKBA 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.

Ocean Power Technologies


Another technology player that's starting to move within range of triggering a near-term breakout trade is Ocean Power Technologies (OPTT - Get Report) , which develops and commercializes proprietary systems that generate electricity by harnessing the renewable energy of ocean waves primarily in the U.S., Europe, Asia and Australia. This stock has been destroyed by the sellers over the last six months, with shares down huge by 62%.

If you take a glance at the chart for Ocean Power Technologies, you'll notice that this stock has been downtrending badly over the last four months and change, with shares moving lower from its high of $1.54 to its new 52-week low of 54 cents per share. During that downtrend, shares of OPTT have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of OPTT have now started to stabilize and trend sideways a bit over the last few weeks, with shares moving between 54 cents on the downside and 70 on the upside. Any high-volume move above the upper-end of its recent sideways trending chart pattern could trigger a big breakout trade for shares of OPTT.

Traders should now look for long-biased trades in OPTT if it manages to break out above some near-term overhead resistance levels at 65 to 69 cents per share and then above 70 cents per 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 volume of 177,670 shares. If that breakout materializes soon, then OPTT will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of 87 cents per share to around $1 a share.

Traders can look to buy OPTT off weakness to anticipate that breakout and simply use a stop that sits right below its new 52-week low of 54 cents per share. One can also buy OPTT off strength once it starts to trend above those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Linn


My final breakout trading prospect is energy player Linn (LNCO) , which focuses on the acquisition and development of oil and natural gas properties in the U.S. This stock has been hit hard by the shorts over the last six months, with shares getting slammed lower by 62%.

If you look at the chart for Linn Co., you'll notice that this stock has been uptrending over the last month, with shares moving higher from its new 52-week low of 8.58 a share to its recent high of $13.08 a share. During that uptrend, shares of LNCO have been making mostly higher lows and higher highs, which is bullish technical price action. That uptrend is coming after shares of LNCO plunged sharply lower from its last October high of $24.51 to its new 52-week low of $8.58 a share hit in last December. Shares of LNCO have just started to spike notably higher right above some near-term support at $9.59 a share and it's now quickly moving within range of triggering a big breakout trade above some near-term overhead resistance levels.

Traders should now look for long-biased trades in LNCO if it manages to break out above some key near-term overhead resistance levels at $11.54 to $12 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 3.59 million shares. If that breakout kicks off soon, then LNCO will set up to re-test or possibly take out its next major overhead resistance levels at $13.08 to $14 a share, or even its 50-day moving average of $15.71 a share.

Traders can look to buy LNCO off weakness to anticipate that breakout and simply use a stop that sits right around some key near-term support at $9.59 a share. One can also buy LNCO 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.

-- 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.