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, it's free to find new buyers and momentum players which 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 I love to trade.

I frequently flag high-probability setups, breakout plays and stocks that are acting technically bullish. These are the ones 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, 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.

Tenet Healthcare

One healthcare player that's starting to trend within range of triggering a near-term breakout trade is Tenet Healthcare  (THC - Get Report)  , which primarily operates acute care hospitals and related healthcare facilities. This stock has been smacked lower by the bears over the last six months, with shares falling sharply by 48.3%.

If you take a look at the chart for Tenet Healthcare, you'll notice that this stock recently formed a double-bottom chart pattern, after shares found some buying interest at $14.30 to $14.51 a share over the last few weeks. Following that potential bottom, shares of Tenet Healthcare have now started to rebound a bit higher and flirt with its 20-day moving average of $15.04 a share. That slight rebound is now starting to push 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 Tenet Healthcare if it manages to break out above some near-term overhead resistance levels at $15.38 to $16.08 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 3.31 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 50-day moving average of $17.54 a share to $17.66 a share. Any high-volume move above $17.66 will then give this stock a chance to re-fill some of its previous gap-down-day zone from November that started near $20.50 a share.

Traders can look to buy Tenet Healthcare 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 at $14.06 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.

Bellicum Pharmaceuticals

A clinical stage biopharmaceutical player that's starting to spike within range of triggering a near-term breakout trade in Bellicum Pharmaceuticals (BLCM - Get Report) , which focuses on discovering and developing novel cellular immunotherapies for the treatment of hematological cancers, solid tumors, and orphan inherited blood disorders in the U.S. and internationally. This stock has been under heavy selling pressure over the last three months, with shares trading off by 30.7%.

If you take a glance at the chart for Bellicum Pharmaceuticals, you'll notice that this stock recently formed a double-bottom chart pattern, after shares found some buying interest at $13.25 to $13.50 a share. This potential bottom is coming after shares of Bellicum Pharmaceuticals dropped sharply over the last two months from its high of $23.11 to its recent low of $13.50 a share. This stock has now started to rip higher off that $13.50 low, and it's quickly trending within range of triggering a near-term breakout trade.

Traders should now look for long-biased trade in Bellicum Pharmaceuticals if it manages to break out above its 200-day moving average of $14.93 a share to around $15.50 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 333,414 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 20-day moving average of $16.31 to $17, or even its 50-day moving average of $17.72 a share to $18 a share.

Traders can look to buy Bellicum Pharmaceuticals off weakness to anticipate that breakout and simply use a stop that sits right around those recent double-bottom support levels. One could also buy this stock off strength once it starts to clear above those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Community Health Systems

Another healthcare player that's starting to spike within range of triggering a big breakout trade is Community Health Systems (CYH - Get Report) , which owns, leases, and operates general acute care hospitals in the U.S. This stock has been hit hard by the bears over the last six months, with shares falling sharply by 58.8%.

If you take a glance at the chart of Community Health Systems, you'll notice that this stock recently formed a triple-bottom chart pattern, after shares found some buying interest at $5.33, $5.24 and $5.36 a share over the last month. Following that potential bottom, this stock has now started to spike higher and trend back above its 20-day moving average of $5.53 a share. That spike to the upside is now quickly pushing shares of Community Health Systems within range of triggering a big breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in Community Health Systems, if it manages to break out above some near-term overhead resistance levels at $5.73 to $5.87 a share and then above $6 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 5.92 million 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 $6.18 to its 50-day moving average of $6.34, or even its gap-down-day high from October at $6.50 a share. Any high-volume move above $6.50 will then give this stock a chance to re-fill some of its previous gap-down-day zone that started near $10 a share.

Traders can look to buy Community Health Systems off weakness to anticipate that breakout and simply use a stop that sits just below those triple bottom support levels, or near $5 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.

StoneMor Partners

Another personal services player that's starting to trend within range of triggering a big breakout trade is StoneMar Partners (STON - Get Report) , which owns and operates cemeteries in the U.S. This stock has been destroyed by the bears over the last six months, with shares collapsing by 64.7%.

If you take a glance at the chart for StoneMor Partners, you'll notice that this stock recently formed a double-bottom chart pattern, after shares found some buying interest at $7.74 to $7.78 a share over the last two months. Following that potential bottom, this stock has now started to spike notably higher and it's beginning to flirt with its 20-day moving average of $8.73 a share. That rebound is now quickly pushing shares of SoneMor Partners within range of triggering a big breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in StoneMor Partners if it manages to break out above some near-term overhead resistance levels at $9 to $9.05 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 517,239 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 $10 to $10.50, or even $11 to $12 a share.

Traders can look to buy StoneMor Partners off weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $8 a share, or around those recent double-bottom support levels. 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.

T2 Biosystems

My final breakout trading prospect is vitro diagnostics player T2 Biosystems (TTOO - Get Report) , which develops diagnostic products and product candidates in the U.S. This stock has been smoked by the sellers over the last six months, with shares falling sharply by 41.1%.

If you look at the chart for T2 Biosystems, you'll notice that this stock has recently formed a double-bottom chart pattern, after shares found some buying interest at $4.92 to $4.89 a share over the last five months. Shares of T2 Biosystems have now started to spike higher off those support levels, and it's beginning to flirt with its 20-day moving average of $5.34 a share. That rebound off its recent low of $4.89 a share 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 T2 Biosystems, if it manages to break out above its 20-day moving average of $5.34 a share and then above more near-term overhead resistance levels at $5.50 to around $5.70 a share with volume that hits near or above its three-month average action of 100,088 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 $6 to its 50-day moving average of $6.06 a share, or even $6.50 to $7 a share.

Traders can look to buy shares of T2 Biosystems off weakness to anticipate that breakout and simply use a stop that sits just below 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.

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