5 Stocks Poised for Breakouts

WINDERMERE, Fla. (Stockpickr) -- 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 that can ultimately push the stock significantly higher.

An example of a recent successful breakout trade is computer storage device player OCZ Technology Group which I featured in Jan. 24's "4 Tech Stocks Under $10 Spiking Higher." I mentioned in that piece that shares of OCZ were ripping higher right above some near-term support at $1.83 a share with heavy upside volume. That move was quickly pushing shares of OCZ within range of triggering a major breakout trade if the stock could manage to take out some key overhead resistance levels at $2.19 to $2.27 a share with high volume.

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Guess what happened? Shares of OCZ triggered that breakout the following trading session on monster upside volume. The stock exploded higher and closed up over $2.40 a share. The next trading day shares of OCZ hit a high of $2.77 a share, which represents a monster gain for anyone who bought the stock off my original article in anticipation of that breakout. Since then, shares of OCZ have pulled back to its current price of $2.08 a share, as profit taking took over. Traders can now look for long-biased trades in OCZ again as long as it doesn't move back below its 50-day moving average of $1.88 a share with high volume.

Breakout candidates are something that I tweet about on a daily basis. I frequently tweet out 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.

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