5 Stocks Poised for Breakouts

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