This story has been updated from an earlier version with technical charts.

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.

Shenandoah Telecommunications

One technology player that's starting to move within range of triggering a major breakout trade is Shenandoah Telecommunications  (SHEN - Get Report) , which provides regulated and unregulated telecommunications services to end-user customers and other telecommunications providers in Virginia, West Virginia, central Pennsylvania and western Maryland. This stock has been under some notable selling pressure over the last three months, with shares down by 24%.

If you take a look at the chart for Shenandoah Telecommunications, you'll notice that this stock has been downtrending badly over the last three months, with shares collapsing off its high of $42.66 a share to its recent low of $24.92 a share. During that downtrend, shares of Shenandoah Telecommunications have been consistently making lower highs and lower lows, which is bearish technical price action. That said, this stock has now started to bounce off its 20-day moving average of $25.83 a share with decent upside volume flows. That bounce is now quickly pushing this stock within range of triggering a major breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in Shenandoah Telecommunications if it manages to break out above some near-term overhead resistance levels at around $27 to $27.22 a share and then above its 200-day moving average of $28.17 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 373,119 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 $29.90 to $31, or even its 50-day moving average of $32.80 a share to $35 a share.

Traders can look to buy Shenandoah Telecommunications off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $25.52 or $24.92 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.

Acorda Therapeutics

A biopharmaceutical player that's starting to trend within range of triggering a near-term breakout trade is Acorda Therapeutics  (ACOR - Get Report) , which identifies, develops and commercializes novel therapies for neurological disorders in the U.S. This stock has sold off notably over the last six months, with shares dropping by 8.6%.

If you take a glance at the chart for Acorda Therapeutics, you'll notice that this stock spiked modestly higher on Thursday right off its 20-day moving average of $24.72 a share and back above its 50-day moving average of $24.89 a share with decent upside volume flows. This bump to the upside is now quickly pushing shares of Acorda Therapeutics within range of triggering a near-term breakout trade above a key downtrend line that dates back to July.

Traders should now look for long-biased trade in Acorda Therapeutics if it manages to break out above that downtrend line that will trigger over some key resistance levels at $26.14 to $26.73 a share and then above $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 506,606 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 $28.50 to $29.77, or even its 200-day moving average of $30.21 to $32.50 a share.

Traders can look to buy Acorda Therapeutics off weakness to anticipate that breakout and simply use a stop that sits right below its 20-day moving average of $24.72 a share or near its recent low of $23.59 a share. 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.

Genomic Health

Another health care player that's starting to trend within range of triggering a near-term breakout trade is Genomic Health  (GHDX - Get Report) , which provides actionable genomic information to personalize cancer treatment decisions in the U.S. and internationally. This stock has been in play with the bulls over the last six months, with shares trending higher by 18.8%.

If you take a glance at the chart of Genomic Health, you'll notice that this stock has been uptrending a bit over the last month or so, with shares moving higher off its low of $25.66 a share to its recent high of $28.60 a share. During that uptrend, this stock has been making mostly higher lows and higher highs, which is bullish technical price action. That trend has now pushed shares of Genomic Health within range of triggering a near-term breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in Genomic Health if it manages to break out above some near-term overhead resistance levels at $28.20 to $28.60 a share and then above more resistance at $29 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 202,252 shares. If that breakout kicks off soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $30 to $30.60, or even $32.70 to its 52-week high of $35.79 a share.

Traders can look to buy Genomic Health off weakness to anticipate that breakout and simply use a stop that sits right around its 20-day moving average of $27.02 a share or near some key support at $26.39 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.

Dynavax Technologies

Another stock that's starting to spike within range of triggering a near-term breakout trade is Dynavax Technologies  (DVAX - Get Report) , which discovers and develops novel vaccines and therapeutics in the U.S. This stock has been smashed by the sellers over the last six months, with shares falling sharply by 26%.

If you take a glance at the chart for Dynavax Technologies, you'll notice that this stock has been downtrending badly over the last few weeks, with shares falling sharply off its high of $17.50 a share to its new 52-week low of $10.14 a share. During that move, this stock has been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of Dynavax Technologies have now started to rebound off some near-term support at $11.26 a share with strong upside volume flows.

Volume on Thursday registered over 1.93 million shares, which is well above its three-month average action of 1.14 million shares. That rebound is now quickly pushing this stock within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in Dynavax Technologies if it manages to break out above Thursday's intraday high of $12.22 a share and then above more resistance levels at $12.30 to $13 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 1.14 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 $14 to its 20-day moving average of $14.39 a share, or even its 50-day moving average of $15 to $16 a share.

Traders can look to buy Dynavax Technologies off weakness to anticipate that breakout and simply use a stop that sits just below some key near-term support at $11.26 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.

BioBlast Pharma

My final breakout trading prospect is clinical development-stage biopharmaceutical player BioBlast Pharma  (ORPN) , which focuses on the identification, licensing, acquisition, development and commercialization clinically meaningful therapies for patients with rare and ultra-rare genetic diseases. This stock has been hit hard by the sellers over the last six months, with shares dropping large by 33.7%.

If you look at the chart for BioBlast, you'll notice that this stock recently formed a double bottom chart pattern, after shares found some buying interest at $1.55 to $1.60 a share over the last two months. Following that potential bottom, this stock has now started to spike higher back above both its 50-day moving average of $1.68 a share and its 20-day moving average of $1.72 a share with strong upside volume flows.

Volume on Thursday registered over 176,000 shares, which is well above its three-month average action of 100,202 a shares. This high-volume bump to the upside 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 BioBlast if it manages to break out above some near-term overhead resistance levels at Thursday's intraday high of $1.75 a share to $1.79 a share with volume that registers near or above its three-month average action of 101,202 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 $2.04 to $2.20, or even $2.25 to $2.45 a share.

Traders can look to buy shares of BioBlast Pharma off weakness to anticipate that breakout and simply use a stop that sits right around those recent double bottom support levels, or near its new 52-week low of $1.50 a share. 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.

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