5 Stocks Setting Up for Big 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 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.

Vale SA

If you take a look at the chart for Vale SA (VALE) , you'll notice that this stock has started to trend back above its 20-day moving average of $8.41 a share, after a sharp drop to its recent low of $7.47 a share. This bump back above the 20-day is quickly pushing shares of Vale SA within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in Vale SA if it manages to break out above some near-term resistance levels at $8.69 to its 50-day at $8.75 and then above $8.90 to $9 with strong volume. Look for a sustained move above those levels with volume that hits near or above its three-month average of 29.05 million shares. If that breakout hits soon, then this stock will set up to re-test or possibly take out its next major resistance levels at $9.83 to $10.50 a share.

Horizon Pharma

If you take a look at the chart for Horizon Pharma (HZNP) , you'll notice that this stock recently gapped-down sharply from $15.50 to around $10 with heavy downside volume flows. Following that move, this stock went on to print a new 52-week low of $9.45 a share. Shares of Horizon Pharma have started to rebound off that $9.45 low, and it's quickly trending within range of triggering a big breakout trade.

Traders should now look for long-biased trade in Horizon Pharma if it manages to break out above some near-term resistance levels at $10.50 to $11.10 with high volume. Look for a sustained trend above those levels with volume that hits near or above its three-month average of 4.03 million shares. If that breakout hits soon, then this stock will set up to re-fill some of its recent gap-down-day zone that started near $15.50 a share.

Tesla

If you take a look at the chart for Tesla (TSLA) , you'll notice that this stock has been uptrending strong over the past four months, with shares moving higher off its low of $242 to its recent high of $327.66 a share. During that uptrend, this stock has been consistently making higher lows and higher highs, which is bullish technical price action. That strong trend is now quickly pushing this stock within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in Tesla if it manages to break out above resistance levels at $327 to its 52-week high of $327.66 with high volume. Look for a sustained move above those levels with volume that registers near or above its three-month average of 5.77 million shares. Some possible upside targets off that breakout are $335 to $340, or even $345 to $350 a share.

TG Therapeutics

If you take a look at the chart for TG Therapeutics (TGTX) , you'll notice that this stock has been uptrending strong over the past few weeks, with shares moving higher off its low of $9.40 to its recent high of $12.95 a share. During that uptrend, this stock has been consistently making higher lows and higher highs, which is bullish technical price action. That trend is now quickly pushing shares of TG Therapeutics within range of triggering a near-term breakout trade.

Traders should look for long-biased trades in TG Therapeutics if it manages to break out above some near-term resistance levels at $12.50 to around $13 with volumes that register near or above its three-month average of 2.56 million shares. Some possible upside targets off that breakout are its 52-week high of $15.05 to $17 a share.

Adaptimmune Therapeutics

If you take a look at the chart for Adaptimmune Therapeutics (ADAP) , you'll notice that this stock is starting to spike higher above its 50-day moving average of $5.27 and its 200-day moving average of $5.22 a share. That spike is quickly pushing this stock within range of triggering a major breakout trade above a key downtrend line.

Traders should look for long-biased trades in Adaptimmune Therapeutics if it manages to clear that downtrend line and break out above resistance levels at $5.50 to $5.81 and then over $5.90 with volume that hits near or above its three-month average of 288,157 shares. Some possible upside targets off that breakout are $6.50 to its 52-week high of $8.36 a share.

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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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