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.

Neos Therapeutics

One pharmaceutical player that's starting to spike within range of triggering a big breakout trade is Neos Therapeutics  (NEOS - Get Report) , which engages in the development, manufacture and commercialization of products for the treatment of attention deficit hyperactivity disorder using its drug delivery technologies. This stock has been smacked lower by the sellers over the last six months, with shares falling sharply by 31.2%.

If you take a look at the chart for Neos Therapeutics, you'll notice that this stock ripped sharply higher on Thursday right off its new 52-week low of $6.33 a share with strong upside volume flows. Volume for that trading session registered over 209,000 shares, which is well above its three-month average action of 122,939 shares. This high-volume rip to the upside is now quickly pushing shares of Neos Therapeutics within range of triggering a big breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in Neos Therapeutics if it manages to break out above its 20-day moving average of $7.25 a share and then above more key resistance levels at $7.50 to $7.75 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 122,939 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 its 50-day moving average of $8.28 to $9, or even $9.65 to $10 a share.

Traders can look to buy Neos Therapeutics off weakness to anticipate that breakout and simply use a stop that sits right below its new 52-week low of $6.33 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.

FireEye

A application software player that's starting to move within range of triggering a near-term breakout trade is FireEye  (FEYE - Get Report) , which provides cybersecurity solutions for detecting, preventing, analyzing and resolving cyber-attacks. This stock has been falling notably over the last six months, with shares off by 14%.

If you take a glance at the chart for FireEye, you'll notice that this stock recently formed a double bottom chart pattern, after shares found some buying interest at $13.80 to $14.10 a share over the last month. Following that potential bottom, shares of FireEye have now started to trend back above its 20-day moving average of $14.70 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 trade in FireEye if it manages to break out above some near-term overhead resistance levels at $15.54 to its 50-day moving average of $15.70 a share and then above some more resistance at $15.75 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 5.34 million shares. If that breakout fires off soon, then this stock will set up to re-fill some of its previous gap-down-day zone from early August that started at $17.50 a share. If that gap gets filled with strong volume, then this stock will have a chance to tag $18.50 to $20 a share.

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

Pan American Silver

Another stock that's starting to trend within range of triggering a big breakout trade is Pan American Silver  (PAAS - Get Report) , which engages in silver mining and related activities. Its activities include the exploration, mine development, extraction, processing, refining and reclamation of silver mines. This stock has been red hot over the last six months, with shares soaring higher by 96.2%.

If you take a glance at the chart of Pan American Silver, you'll notice that this stock recently formed a double bottom chart pattern over the last two months, after shares found some buying interest at $17 to $17.17 a share. Shares of Pan American Silver spiked notably higher on Thursday right above $17 a share with decent upside volume flows. This bump to the upside is now quickly pushing this stock within range of triggering a big breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in Pan American Silver if it manages to break out above Thursday's intraday high of $18.17 a share and then above its 50-day moving average of $18.57 a share and above more resistance at $18.78 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 3.35 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 its 20-day moving average of $19.45 a share to $20.50, or even its 52-week high of $21.59 a share.

Traders can look to buy Pan American Silver off weakness to anticipate that breakout and simply use a stop that sits right below those recent double bottom support levels or near more support around $16 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.

Radius Health

Another biopharmaceutical player that's starting to trend within range of triggering a near-term breakout trade is Radius Health  (RDUS - Get Report) , which develops and sells therapeutics in the areas of osteoporosis, oncology and endocrine diseases primarily in the U.S. This stock has been on fire over the last six months, with shares ripping higher by 81.4%.

If you take a glance at the chart for Radius Health, you'll notice that this stock has been uptrending over the last four months, with shares ripping higher off its low of $29.27 a share to its recent high of $59.88 a share. During that uptrend, this stock has been consistently making higher lows and higher highs, which is bullish technical price action. This stock spiked modestly higher on Thursday back above its 20-day moving average of $55 a share with decent upside volume flows. That spike is now quickly pushing shares of Radius Health within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in Radius Health if it manages to break out above Thursday's intraday high of $55.72 a share and then above more resistance at $55.95 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 825,214 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 $58.14 to $59.88, or even $62.84 to $65 a share.

Traders can look to buy Radius Health off weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $54 a share or at $51.58 a share. 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.

BeiGene

My final breakout trading prospect is clinical-stage biopharmaceutical player BeiGene  (BGNE - Get Report) , which discovers and develops molecularly targeted and immuno-oncology drugs for the treatment of cancer. This stock is down modestly over the last six months, with shares off by just 1.6%.

If you look at the chart for BeiGene, you'll notice that this stock has been uptrending over the last month, with shares moving higher off its low of $24.53 a share to its recent high of $29.82 a share. During that uptrend, this stock has been making mostly higher lows and higher highs, which is bullish technical price action. Shares of BeiGene spiked higher on Thursday right off its 50-day moving average of $28.34 a share with decent upside volume flows. This spike is now quickly pushing this stock within range of triggering a near-term breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in BeiGene if it manages to break out above some near-term overhead resistance levels at $29.82 to $30.50 a share with volume that hits near or above its three-month average action of 53,733 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 $32.26 to $33.30, or even $33.50 to its all-time high of $35.60 a share.

Traders can look to buy shares of BeiGene off weakness to anticipate that breakout and simply use a stop that sits right around some near-term support levels at $27.67 to $26 a share. 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 conformable percentage from your entry point.

This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.