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.

Ocwen Financial

One financial services player that's starting to spike within range of triggering a near-term breakout trade is Ocwen Financial  (OCN - Get Report) , which engages in servicing and origination of mortgage loans in the U.S. This stock has been destroyed by the sellers over the last six months, with shares off large by 75.3%.

If you take a look at the chart for Ocwen Financial, you'll notice that this stock recently formed a double bottom chat pattern, after shares found some buying interest at $1.50 to $1.53 a share over the last few weeks. Following that potential bottom, shares of Ocwen Financial have now started to trend higher, 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 Ocwen Financial if it manages to break out above its 20-day moving average of $1.74 a share and then once it clears more near-term overhead resistance levels at $1.77 to $1.80 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 2.55 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 its 50-day moving average of $1.95 a share to $2.10, or even $2.34 to $2.50 a share.

Traders can look to buy Ocwen Financial off weakness to anticipate that breakout and simply use a stop that sits right around those recent double bottom support levels. One can also buy this stock 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.

3D Systems

A technology player that's starting to move within range of triggering a big breakout trade is 3D Systems  (DDD - Get Report) , which provides 3D printing products and services worldwide. This stock had been in play with the bulls over the last three months, with shares soaring higher by 57.7%.

If you take a glance at the chart for 3D Systems, you'll notice that this stock ripped higher on Thursday back above its 20-day moving average of $13.10 a share with strong upside volume flows. Volume for that trading session registered over 4.02 million shares, which is well above its three-month average action of 3.82 million shares. This high-volume rip to the upside is now quickly pushing shares of 3D Systems within range of triggering a big breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trade in 3D Systems if it manages to break out above its 50-day moving average of $13.86 a share and then above more near-term overhead resistance levels at $14.17 to $14.21 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 3.82 million shares. If that breakout fires off soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $16 to $17, or even $18 to $19 a share.

Traders can look to buy 3D Systems off weakness to anticipate that breakout and simply use a stop that sits right below Thursday's intraday low of $12.82 a share or around its 200-day moving average of $11.74 a share. One could 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.

Alon USA Partners

Another stock that's starting to trend within range of triggering a big breakout trade is Alon USA Partners  (ALDW) , which refines and markets petroleum products in the U.S. This stock has been under heavy selling pressure over the last six months, with shares falling sharply by 53%.

If you take a glance at the chart of Alon USA Partners, you'll notice that this stock recently formed a triple bottom chart pattern, after shares found some buying interest at $9.17, $9.12 and $9.07 a share over the last month. Following that potential bottom, this stock has now started to trend back above both its 20-day moving average of $9.79 a share and its 50-day moving average of $9.81 a share. That move is now quickly pushing shares of Alon USA Partners within range of triggering a big breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in Alon USA Partners if it manages to break out above some near-term overhead resistance levels at $10.30 to $10.52 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 211,327 shares. If that breakout fires off soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $11.27 to $12, or even $12.66 to $13.15 a share.

Traders can look to buy Alon USA Partners off weakness to anticipate that breakout and simply use a stop that sits right below those recent triple bottom support levels. 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.

uniQure

A biopharmaceutical player that's starting to spike within range of triggering a near-term breakout trade is uniQure  (QURE - Get Report) , which engages in the discovery, development, and commercialization of gene therapies in the Netherlands. This stock has been smashed by the bears over the last six months, with shares falling sharply by 55.4%.

If you take a glance at the chart for uniQure, you'll notice that this stock has been downtrending badly over the last month, with shares collapsing off its high of $14.59 a share to its new 52-week low of $6.75 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 uniQure have now started to rebound a bit off that $6.75 low, 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 uniQure if it manages to break out above some near-term overhead resistance levels at $7.50 to $8 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 312,556 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 $8.73 to $9, or even its 20-day moving average of $9.64 to $10 50 a share.

Traders can look to buy uniQure off weakness to anticipate that breakout and simply use a stop that sits right below its new 52-week low of $6.75 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.

CytomX Therapeutics

My final breakout trading prospect is oncology-focused biopharmaceutical player CytomX Therapeutics  (CTMX - Get Report) , which is engaged in the development of a class of antibody therapeutics based on its Probody technology platform. This stock has been smacked lower by the sellers over the last six months, with shares off sharply by 51%.

If you look at the chart for CytomX Therapeutics, you'll notice that this stock has just started to trend back above its 20-day moving average of $9.89 a share with decent upside volume flows. This spike back above its 20-day is coming after shares of CytomX Therapeutics collapsed off its February high of $16.93 a share to its low hit in June at $9.10 a share. This spike over its 20-day moving average of $9.89 a share is now quickly pushing this stock 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 CytomX Therapeutics if it manages to break out above some near-term overhead resistance levels at $10.45 to $10.49 a share and then above more key resistance levels at its 50-day moving average of $10.84 a share to $11.11 a share with volume that hits near or above its three-month average action of 106,355 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 $12 to $12.50, or even $13 to $14 a share.

Traders can look to buy shares of CytomX Therapeutics off weakness to anticipate that breakout and simply use a stop that sits right below Thursday's intraday low of $9.79 a share or around its recent low of $9.10 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 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.