5 Stocks Trending Close to Major Breakouts

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 who 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.

Centennial Resource Development

Take a look at the chart for Centennial Resource Development (CDEV)  and you'll notice that this stock is starting to trend back above both its 20-day at $18.42 and its 50-day at $18.45 with decent upside volume. This bump higher is now starting to push shares of Centennial within range of triggering a big breakout trade above a key downtrend line that dates back to the start of the year.

Traders should now look for long-biased trades in Centennial if it manages to clear that downtrend line above $18.99 to $19.62 with strong volume. Look for a sustained move above those levels with volume that hits near or above its three-month average 927,708 shares. If that breakout triggers soon, then this stock will set up to re-test or possibly take out its all-time high of $20.97 a share. Any high-volume move above $20.97 will give this stock a chance to make a run at $25 to $30 a share.

Golar LNG

The chart for Golar LNG (GLNG)  indicates that this stock has been uptrending over the last six months, with shares moving higher off its low of $19.77 to its recent high of $29.13. During that uptrend, this stock has been making mostly higher lows and higher highs, which is bullish technical price action. That uptrend has now pushed shares of Golar LNG within range of triggering a big breakout trade.

Traders should now look for long-biased trade in Golar LNG if it manages to break out above its 52-week high of $29.18 to some past resistance at $30.34 with high volume. Look for a sustained move above those levels with volume that hits near or above its three-month average 1.48 million shares. If that breakout fires off soon, then this stock will set up to re-test or possibly take out its next major resistance levels at $33.50 to $39 a share.

Endologix

The chart for Endologix (ELGX)   shows that this stock is spiking higher on Friday right above both its 20-day and 50-day moving averages. This spike to the upside is now quickly pushing shares of Endologix within range of triggering a big breakout trade above a key downtrend line that dates back to the end of 2016.

Traders should now look for long-biased trades in Endologix if it manages to break above that downtrend line over resistance levels at $7.12 to $7.14 and then above $7.40 with high volume. Look for a sustained move above those levels with volume that registers near or above its three-month average of 2.17 million shares. If that breakout hits soon, then this stock will set up to re-test or possibly take out its next key resistance level at $7.91 a share. Any high-volume move above $7.91 will then give this stock a chance to re-fill some of its previous gap-down-day zone that started at $9.50 a share.

Bellicum Pharmaceuticals

The chart for Bellicum Pharmaceuticals (BLCM)  demonstrates notice that this stock has been uptrending over the last month, with shares moving higher off its low of $11.76 to its recent high of $14.50. During that move, this stock has been making mostly higher lows and higher highs, which is bullish technical price action.

Traders should now look for long-biased trades in Bellicum Pharmaceuticals if it manages to break out above some near-term overhead resistance levels at $14.50 to $14.84 and then above $15.17 with volumes that register near or above its three-month average of 361,330 shares. If that breakout triggers soon, then this stock will set up to make a run at its next major resistance levels at its 200-day moving average of $15.84 to $17, or even $18 to $20 a share.

Seaspan

The chart for Seaspan (SSW)  indicates this stock recently formed a double bottom chart pattern, after shares found some buying interest at $6.62 to $6.60 over the last two months. Following that potential bottom, shares of Seaspan have now started to rebound and it's beginning to trend within range of triggering a big breakout trade.

Traders should now look for long-biased trades in Seaspan if it manages to break out above some near-term resistance levels at $7.22 to its 20-day at $7.46 with volume that hits near or above its three-month average of 1.24 million shares. If that breakout fires off soon, then this stock will set up to make a run at its next major resistance levels at $8 to its 50-day of $8.49, or even $8.91 to $10 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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