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. These are also the exact type of stocks that I love to trade and alert to my subscribers in real-time. I frequently flag 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 possibly trade higher from current levels.

Raptor Pharmaceuticals

One biopharmaceutical player that's starting to spike within range of triggering a near-term breakout trade is Raptor Pharmaceuticals  (RPTP) , which  focuses on developing and commercializing transformative treatments for people affected by rare and debilitating diseases. This stock has been trending strong over the last three months, with shares moving sharply higher by 24.2%.

If you take a look at the chart for Raptor Pharmaceuticals, you'll notice that this stock has been uptrending a bit over the last few weeks, with shares moving higher off its low of $4.03 a share to its intraday high on Thursday of $4.94 a share. During that uptrend, this stock has been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of Raptor Pharmaceuticals within range of triggering a near-term breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in Raptor Pharmaceuticals if it manages to break out above some near-term overhead resistance levels at $5 to $5.14 a share and then above more resistance at $5.25 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 948,121 shares. If that breakout triggers soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $5.50 to $5.75, or even its 200-day moving average of $6.11 to $6.69 a share.

Traders can look to buy Raptor Pharmaceuticals off weakness to anticipate that breakout and simply use a stop that sits right below some near-term support levels at $4.50 to $4.25 a share. One can also buy this stock 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.

Potash

An agricultural chemicals player that's starting to trend within range of triggering a big breakout trade is Potash  (POT) , which produces and sells fertilizersand related industrial and feed products worldwide. This stock has been under some selling pressure over the last six months, with shares off notably by 19.3%.

If you take a glance at the chart for Potash, you'll notice that this stock recently formed a double bottom chart pattern, after shares found some buying interest at $15.54 to $15.50 a share. Following that potential bottom, this stock has now started to uptrend a bit, with shares moving mostly higher lows and higher highs, which is bullish technical price action. That uptrend is now quickly pushing shares of Potash within range of triggering a big breakout trade above some key near-term overhead resistance levels.

Traders should now look for long-biased trade in Potash if it manages to break out above some near-term overhead resistance levels at its 20-day moving average of $16.73 a share to its 50-day moving average of $16.98 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 8.53 million shares. If that breakout develops soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $17.75 to $18.25, or even its 200-day moving average of $18.74 to $20 a share.

Traders can look to buy Potash off weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $16 a share or around those recent double bottom support levels. One could also buy this stock 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.

Park-Ohio

Another services player that's starting to trend within range of triggering a big breakout trade is Park-Ohio  (PKOH - Get Report) , which operates as an industrial supply chain logistics and diversified manufacturing company primarily in the U.S., Asia, Europe, Canada and Mexico. This stock has been smacked lower by the sellers over the six months, with shares off sharply by 33.4%.

If you take a glance at the chart of Park-Ohio, you'll notice that this stock recently gapped-down sharply lower from around $41 a share to $25.10 a share with monster downside volume. Following that move, this stock went on to print a new 52-week low of $23.10 a share with bearish downside volume flows. That said, shares of Park-Ohio have now started to rebound off that $23.10 low and it's now quickly trending 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 Park-Ohio if it manages to break out above some near-term overhead resistance levels at $26.44 to $27 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 71,830 shares. If that breakout fires off soon, then this stock will set up to re-fill some of its previous gap-down-day zone that started near $41 a share. Some possible upside targets if we get into that gap with volume are its 20-day moving average of $29.04 to around $33 a share.

Traders can look to buy Park-Ohio off weakness to anticipate that breakout and simply use a stop that sits right below Thursday's intraday low of $24.29 a share or near its new 52-week low of $23.10 a share. One can also buy this stock 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.

Under Armour

Another stock that's starting to trend within range of triggering a near-term breakout trade is Under Armour  (UA - Get Report) , which develops, markets and distributes branded performance apparel, footwear and accessories for men, women and youth. This stock has been destroyed by the bears over the last six months, with shares dropping sharply by 58%.

If you take a glance at the chart for Under Armour, you'll notice that this stock has been downtrending badly over the last month and change, with shares collapsing off its high of $47.94 a share to its recent low of $36.20 a share. During that downtrend, this stock has been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of Under Armour have now formed a potential double bottom chart pattern, after shares found some buying interest at $36.20 to some past support at $36.33 a share. If that bottom can hold, then this stock is now starting to trend within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in Under Armour if it manages to break out above some near-term overhead resistance levels at $38 to $39 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 5.93 million shares. If that breakout materializes soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $40 to its 20-day moving average of $40.81, or even its 50-day moving average of $42.26 to around $44 a share.

Traders can look to buy Under Armour off weakness to anticipate that breakout and simply use a stop that sits right below its recent low of $36.20 a share. One can also buy this stock 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.

Qiwi

My final breakout trading prospect is credit services player Qiwi  (QIWI - Get Report) , which operates electronic online payment systems primarily in the Russian Federation, Kazakhstan, Moldova, Belarus, Romania, and the United Arab Emirates. This stock has been hit hard by the sellers over the last six months, with shares off sharply by 40.1%.

If you look at the chart for Qiwi, you'll notice that this stock recently formed a double bottom chart pattern, after shares found some buying interest at $10.15 to $10.42 a share. Following that potential bottom, this stock has now started to trend higher and test its 20-day moving average of $11.86 a share with strong upside volume flows. That move has now quickly pushed shares of Qiwi within range of triggering a major breakout trade above some key near-term overhead resistance levels.

Traders should now look for long-biased trades in Qiwi if it manages to break out above its 20-day moving average of $11.86 to $12.14 a share and then above more key resistance levels at $12.50 to its 50-day moving average of $13.21 a share with volume that hits near or above its three-month average action of 464,679 shares. If that breakout takes hold soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $14.50 to $15.50, or even its 200-day moving average of $16.27 to $16.65 a share.

Traders can look to buy shares of Qiwi off weakness to anticipate that breakout and simply use a stop that sits right below some near-term support levels at $11 a share or near those recent double bottom support levels. One can also buy this stock off strength once it starts to move above those breakout levels with volume and then simply use a stop that sits a conformable percentage from your entry point.

Disclosure: This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.