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 ones that I tweet about on a daily basis. These are also the exact type of stocks I love to trade and alert.

I frequently flag high-probability setups, which are breakout plays and stocks that are acting technically bullish. These are the ones that often make monster moves to the upside. What's great about breakout trading is that you only focus on trends, price and volume. You don't have to concern yourself with anything else. The charts do all the talking.

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.

Sarepta Therapeutics

One biopharmaceutical player that's starting to spike within range of triggering a near-term breakout trade is Sarepta Therapeutics (SRPT) , which focuses on the discovery and development of RNA-based therapeutics for the treatment of rare, infectious, and other diseases.

If you take a look at the chart for Sarepta Therapeutics, you'll notice that this stock recently formed a double bottom chart pattern, after shares found some buying interest at $26.66 to $26.26 a share over the last two months.

Traders should now look for long-biased trades in Sarepta Therapeutics if it manages to break out above its 200-day moving average of $31.36 a share and then above resistance at $32.50 a share with high volume. Look for a sustained trend above those levels with volume that hits near or above its three-month average of 2.43 million shares. If that breakout hits, then this stock could re-test or take out its next major resistance levels at $35 to $40 a share.

L Brands

A apparel stores player that's starting to move within range of triggering a big breakout trade is L Brands (LB) , which operates as a specialty retailer of women's intimate and other apparel, beauty and personal care products, and accessories.

If you take a look at the chart for L Brands, you'll notice that this stock recently gapped-down sharply lower from around $58 a share to $47.93 a share with monster downside volume. Following that move, this stock has now started to rebound off that $47.93 low and it's quickly trending within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in L Brands if it manages to break out above $51 a share with high volume. Look for a sustained trend above $51 with volume that hits near or above its three-month average of 3.02 million shares. If that breakout triggers, then this stock will set up to re-fill some of that recent gap-down-day zone.

Endologix

Another healthcare player that's starting to spike within range of triggering a major breakout trade is Endologix (ELGX) , which develops, manufactures, markets, and sells medical devices for the treatment of abdominal aortic aneurysms in the U.S. and internationally.

If you take a look at the chart for Endologix, you'll notice that this stock is ripping higher on Friday back above its 50-day moving average of $6.51 a share with decent volume. This stock also recently formed a double bottom chart pattern, after shares found some buying interest at $5.67 to $5.58 a share.

Traders should now look for long-biased trades in Endologix if it manages to clear a downtrend line that starts over $6.85 to $7.14 a share with volume that hits near or above its three-month average of 2.26 million shares. If that breakout develops, then this stock will set up to make a run at $7.50 to $8, or even into its gap-down-day zone.

Bluebird Bio

One biotechnology player that's quickly trending within range of triggering a big breakout trade is Bluebird Bio (BLUE) , which focuses on developing transformative gene therapies for severe genetic and rare diseases.

If you take a look at the chart for Bluebird Bio, you'll notice that this stock has been uptrending strong over the last three months, with shares moving higher off its low of $60.95 a share to its recent high of $81.25 a share. During that uptrend, this stock has been consistently making higher lows and higher highs, which is bullish technical price action.

Traders should now look for long-biased trades in Bluebird Bio if it manages to break out above its 52-week high of $81.25 a share and above some past resistance at $82 to $83 a share with volume that hits near or above its three-month average of 1 million shares. If that breakout develops, then this stock could make a run at its next major resistance levels at $95 to $100, or even $110 a share.

Noble Drilling

My final breakout trading prospect is energy player Noble Drilling (NE) , which operates as an offshore drilling contractor for the oil and gas industry worldwide.

If you take a look at the chart for Noble Drilling, you'll notice that this stock recently formed a double bottom chart pattern, at $6.49 to $6.41 a share. Following that potential bottom, this stock has now started to spike back above both its 50-day and 200-day moving averages.

Traders should now look for long-biased trades in Noble Drilling if it manages to break out above resistance at $7.39 to $7.80 a share with volume that hits near or above its three-month average of 12.46 million shares. If that breakout triggers, then this stock will set up to re-test or possibly take out its next major resistance levels $8.37 to $9, or even $9.50 a share.

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

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