Stock Quotes in this Article: CLDX, CYTK, CYTR, FSLR, SGEN

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.

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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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.

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Seattle Genetics

One stock that's trending very close to triggering a major breakout trade is Seattle Genetics (SGEN), which develops and commercializes monoclonal antibody-based therapies for the treatment of cancer and autoimmune disease. This stock has been a monster winner for the bulls so far in 2013, with shares up 57%.

If you take a look at the chart for Seattle Genetics, you'll notice that this stock has been uptrending strong for the last two months, with shares soaring higher from its low of $26.60 to its recent high of $37.64 a share. During that uptrend, shares of SGEN have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of SGEN within range of triggering a major breakout trade.

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Traders should now look for long-biased trades in SGEN if it manages to break out above some near-term overhead resistance levels at $37 to $37.64 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 822,000 shares. If that breakout triggers soon, then SGEN will set up to enter new 52-week-high territory above $37.64, which is bullish technical price action. Some possible upside targets off that breakout are $40 to $45 a share or even $50 a share.

Traders can look to buy SGEN off any weakness to anticipate that breakout and simply use a stop that sits just below some key near-term support levels at $34.91 to $33.60 a share. One could also buy SGEN off strength once it takes out those breakout levels with volume and then simply use a stop just below $36 to $35 a share.

Celldex Therapeutics

Another stock that's just starting to enter breakout territory is Celldex Therapeutics (CLDX), which is focused on the development and commercialization of several immunotherapy technologies for the treatment of cancer and other difficult-to-treat diseases. This stock has been red hot so far in 2013, with shares up a whopping 90%.

If you take a look at the chart for Celldex Therapeutics, you'll notice that that this stock has been trending sideways in a consolidation chart pattern for the last two months, with shares moving between $11.01 on the downside and $12.49 on the upside. Shares of CLDX recently formed a triple bottom chart pattern just above $11 a share. This stock has now started to break out above some near-term overhead resistance levels at $12.34 to $12.49 a share with solid upside volume flows.

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Market players should now look for long-biased trades in CLDX as long as it's trending above those key breakout levels at $12.34 to $12.49 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 1.82 million shares. Volume today has already hit 1.14 million shares, and the stock has tag an intraday high of $12.96 a share.

Cytokinetics

Another stock that's starting to push within range of triggering a major breakout trade is Cytokinetics (CYTK), which is engaged in discovery and development of novel small molecule therapeutics that modulate muscle function for the potential treatment of serious diseases and medical conditions. This stock has been in beast mode for all of 2013, with shares up an impressive 92%.

If you look at the chart for Cytokinetics, you'll notice that this stock has been uptrending very strong for the last two months and change, with shares soaring higher from its low of 96 cents to its recent high of $1.36 a share. During that uptrend, shares of CYTK have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now started to push shares of CYTK within range of triggering a major breakout trade.

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Market players should now look for long-biased trades in CYTK if it manages to break out above some key overhead resistance levels at $1.36 to $1.45 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 947,000 shares. If that breakout hits soon, then CYTK will set up to re-test or possibly take out its next major overhead resistance levels at $2 to $2.25 a share. Any high-volume move above $2.25 will then put $2.96 into range for shares of CYTK.

Traders can look to buy CYTK off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $1.15 to its 50-day at $1.08 a share. One can also buy CYTK off strength once it clears those breakout levels with volume and then simply use a stop that sits a few percentage points below your entry point.

Keep in mind that this company is set to report earnings on April 30 after the market close, so look to play the breakout ahead of the quarter and then after the quarter. Holding into earnings is always a risk trade, so play the trend before or after the news is out.

CytRx

Another stock that's quickly trending within range of triggering a major breakout trade is CytRx (CYTR), which is a research and development company specializing in oncology. Its oncology pipeline includes two programs in clinical development for cancer indications: aldoxorubicin and tamibarotene. This stock has been on fire so far in 2013, with shares ripping higher by 50%.

If you look at the chart for CytRx, you'll notice that this stock has been uptrending strong for the last two months, with shares soaring higher from its low of $1.83 to its recent high of $3.07 a share. During that uptrend, shares of CYTR have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now started to push shares of CYTR within range of triggering a major breakout trade.

Traders should now look for long-biased trades in CYTR if it manages to break out above some near-term overhead resistance levels at $2.92 to its 200-day at $2.99 and then once it clears more resistance at $3.07 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average volume of 158,000 shares. If that breakout triggers soon, then CYTR will set up to re-fill some of its previous gap down zone from last October that started above $3.50 a share. This stock could even trade north of $4 if that gap gets filled with volume.

Traders can look to buy CYTR off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $2.65 to $2.56 a share or below its 50-day at $2.47 a share. One can also buy CYTR off strength once it takes out those breakout levels with volume and then simply use a stop just below $2.65 a share.

First Solar

My final idea for a near-term breakout trade is First Solar (FSLR), which designs, manufactures and sells solar electric power modules using a proprietary thin film semiconductor technology. This stock is off to strong start in 2013, with shares up sharply by 24%.

If you look at the chart for First Solar, you'll notice that this stock recently spiked dramatically higher in one trading session, with shares soaring from below $28 to its recent high of $41 a share. That move came on extremely strong upside volume. Shares of FSLR pulled back off that $41 high and have now found support at around $36 a share. This stock is now quickly moving within range of triggering a near-term breakout trade.

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Traders should now look for long-biased trades in FSLR if it manages to break out above some near-tem overhead resistance levels at $39.47 to $41 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 6.32 million shares. If that breakout triggers soon, then FSLR will set up to re-test or possibly take out its next major overhead resistance levels at $50 to $52 a share.

Traders can look to buy FSLR off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $36 to $35.14 a share. One could also buy FSLR off strength once it clears those breakout levels with volume and then simply use a stop just below $38 a share.

To see more breakout candidates, check out the Breakout Stocks of the Week portfolio on Stockpickr.

-- Written by Roberto Pedone in Winderemere, Fla.

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At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.