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.

CytRx

One health care stock that's starting to trend within range of triggering a major breakout trade is CytRx  (CYTR - Get Report) , which operates as a biopharmaceutical research and development company specializing in oncology. This stock has been destroyed by the sellers over the last six months, with shares collapsing lower by 65.9%.

If you take a look at the chart for CytRx, you'll notice that this stock recently gapped-down sharply lower from $1 a share to its new 52-week low of 55 cents per share with strong downside volume flows. Following that move, shares of CytRx have now attempted to form a double bottom chart pattern, after shares have found some buying interest at 55 to 58 cents per share over the last few weeks. Shares of CytRx have now started to spike a bit higher above those double bottom support levels, and it's quickly trending within range of triggering a major breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in CytRx if it manages to break out above some near-term overhead resistance levels at 63 to 65 cents per share and then above 65 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 action of 2.28 million shares. If that breakout triggers soon, then this stock will set up to re-fill some of its previous gap-down-day zone that started near $1 a share.

Traders can look to buy CytRx 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 clear those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

OncoSec Medical

A biotechnology stock that's starting to move within range of triggering a big breakout trade is OncoSec Medical  (ONCS) , which designs, develops and commercializes gene therapies, and therapeutics and proprietary medical approaches to stimulate and guide an anti-tumor immune response for the treatment of cancer in the U.S. This stock has been in play with the bulls over the last six months, with shares moving higher by 11.8%.

If you take a glance at the chart for OncoSec Medical, you'll notice that this stock spiked sharply higher on Thursday right above its 50-day moving average of $1.69 a share with strong upside volume flows. Volume for that trading session registered over 200,000 shares, which is well above its three-month average action of 157,095 a shares. This high-volume spike to the upside is now quickly pushing shares of OncoSec Medical within range of triggering a big breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trade in OncoSec Medical if it manages to breakout above some near-term overhead resistance levels at $1.80 to $1.85 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 157,095 shares. If that breakout hits soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $1.93 to $2.05, or even its 200-day moving average of $2.29 to $2.50 a share.

Traders can look to buy OncoSec Medical off weakness to anticipate that breakout and simply use a stop that sits right around some key near-term support levels at $1.70 to $1.60 a share. One could 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.

Dish Network

Another stock that's starting to trend within range of triggering a big breakout trade is Dish Network  (DISH - Get Report) , which provides pay-TV services in the U.S. This stock has been in play with the bulls over the last six months, with shares moving notably higher by 13.7%.

If you take a glance at the chart of Dish Network, you'll notice that this stock trended notably higher on Thursday right off its 50-day moving average of $51.65 a share and back above its 20-day moving average of $52.32 a share and its 200-day moving average of $52.48 a share with decent upside volume flows. This strong move to the upside is now quickly pushing shares of Dish Network within range of triggering a big breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in Dish Network if it manages to break out above some near-term overhead resistance levels at $54.29 to $54.50 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 2.90 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 $56.60 to $58, or even $60 to $64 a share.

Traders can look to buy Dish Network off weakness to anticipate that breakout and simply use a stop that sits right below its 20-day moving average of $52.32 a share or its 50-day moving average of $51.65 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.

Cerecor

Another clinical-stage biopharmaceutical stock that's starting to spike within range of triggering a big breakout trade is Cerecor  (CERC - Get Report) , which develops drugs to treat patients with neurological and psychiatric disorders. This stock has been under heavy selling pressure over the last three months, with shares moving sharply lower by 31.6%.

If you take a glance at the chart for Cerecor, you'll notice that this stock ripped sharply higher on Thursday right off its 20-day moving average of $2.41 a share and back above its 50-day moving average of $2.47 a share with strong upside volume flows. Volume for that trading session registered over 40,000 shares, which is just above its three-month average action of 37,711 shares. This high-volume rip to the upside is now quickly pushing shares of Cerecor within range of triggering a big breakout trade.

Traders should now look for long-biased trades in Cerecor if it manages to break out above Thursday's intraday high of $2.78 a share and then once it clears more near-term overhead resistance levels at $2.81 to around $3 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 37,711 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 $3.60 to $4, or even $4.20 to $4.40 a share.

Traders can look to buy Cerecor off weakness to anticipate that breakout and simply use a stop that sits right below its 20-day moving average of $2.41 a share or around more key near-term support levels at $2.35 to $2.20 a share. 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.

Hershey 

My final breakout trading prospect is consumer goods player Hershey (HSY - Get Report) , which manufactures, imports, markets, distributes and sells confectionery products. This stock has been in a bullish trend over the last six months, with shares ripping higher by 27.9%.

If you look at the chart for Hershey Company, you'll notice that this stock spiked notably higher on Thursday right above some near-term support at $108.14 a share and back above its 20-day moving average of $109.97 a share with strong upside volume flows. Volume for that trading session registered over 2.13 million shares, which is well above its three-month average action of 1.79 million shares. This high-volume spike to the upside is now quickly pushing shares of Hershey Company within range of triggering a big breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in Hershey Company if it manages to break out above Thursday's intraday high of $112.22 a share and then once it takes out more near-term overhead resistance levels at $112.63 to around $114.50 a share with volume that hits near or above its three-month average action of 1.79 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 level at its 52-week high of $117.79 a share. Any high-volume move above $117.79 will then give this stock a chance to make a run at $120 to $125, or even $130 to $135 a share.

Traders can look to buy shares of Hershey Company off weakness to anticipate that breakout and simply use a stop that sits right below its 20-day moving average of $109.97 a share or around more key support levels at $108.14 to $107.83 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.