5 Stocks Poised for Breakouts

Tickers in this article: NFLX GMCR SNSS GTIV SRPT CPRX
BALTIMORE ( 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.

One recent example of a successful breakout trade that I highlighted was home health services and hospice services player Gentiva Health Services (GTIV) . In " 5 Stocks Poised for Breakouts " on Aug. 3, I mentioned that GTIV was approaching a big breakout if it could manage to clear some key overhead resistance levels at $7.24 to $7.33 a share with high volume.

Guess what happened? Shares of GTIV blasted through those overhead resistance levels with monster volume. The stock never looked back, and it went on to skyrocket towards its current price of $10.80 a share. That's a massive move higher in just a few weeks, and one that could have easily been traded with sound disciple in case the trade never triggered.

>>5 Stocks Under $10 Set to Soar

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, then 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 trade higher from current levels.

Sunesis Pharmaceuticals

One biotechnology and drugs stock that's trading very close to triggering a major breakout trade is Sunesis Pharmaceuticals (SNSS) , which is focused on the development and commercialization of oncology therapeutics for the treatment of solid and hematologic cancers. This stock is off to a hot start in 2012, with shares up a whopping 180% so far. I also featured Sunesis recently in " 5 Biotech Stocks Under $10 Blasting Higher ."

This company has a catalyst on the horizon; the phase III single interim analysis for its Valor leukemia treatment will be conducted sometime in September. The company has already enrolled 391 patients of the 450 planned for this safety and data study.

If you take a look at the chart for Sunesis Pharmaceuticals, you'll notice that this stock has been uptrending very strong for the last six months, with shares making mostly higher lows and higher highs, which is bullish technical price action. This stock just found buyers right off its 50-day moving average of $2.98 a share, and it's now quickly moving within range of triggering a major breakout trade . The upside volume for SNSS has also been increasing dramatically as it approaches this potential breakout play.

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