Stock Quotes in this Article: GTIV, RNA, SRPT, TRMR, CCXI

 DELAFIELD, Wis. (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.

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One example of a successful breakout trade I flagged recently was 3D printer maker Voxeljet AG (VJET), which I featured in Nov. 8's "5 Stocks Poised for Breakouts" at around $41.50 a share. I mentioned in that piece that shares of VJET were uptrending strong since its IPO in October, with the stock soaring from under $20 to its recent high at that time of $42.76 a share. Shares of VJET were starting to trend within range of triggering a major breakout trade above its former all-time high of $42.76 a share.

Guess what happened? Shares of VJET went on to trigger that breakout the same day my article hit the wires with the stock closing at $44.91 a share. This stock continued to skyrocket higher the following week, with shares hitting a new all-time high of $70 a share on November 18. That represents a monster gain of close to 70% in an extremely short timeframe. You can see the power of breakout trading demonstrated with this monster run in shares of VJET in just a bit over a week from when the stock closed in new all-time high territory.

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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.

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.

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With that in mind, here's a look at five stocks that are setting up to break out and trade higher from current levels.

Prosensa Holding

One biotechnology stock that's quickly moving within range of triggering a major breakout trade is Prosensa Holding (RNA), which is engaged in the discovery and development of RNA-modulating therapeutics for the treatment of rare genetic disorders. This stock has been destroyed by the bears so far in 2013, with shares down by a whopping 77%

If you take a look at the chart for Prosensa Holding, you'll notice that this stock recently formed a double bottom chart pattern at $3.43 to $3.46 a share, after shares dropped sharply over the last two months from $7.30 to $3.43 a share. Shares of RNA have just started to rebound off that $3.43 low, and it's breaking out above some near-term overhead resistance at $4.10 a share. That move is quickly pushing shares of RNA within range of triggering another major breakout trade.

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Traders should now look for long-biased trades in RNA if it manages to break out above some near-term overhead resistance levels at $4.63 to $4.85 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 637,035 shares. If that breakout hits soon, then RNA will set up to re-test or possibly take out its next major overhead resistance levels at $5.50 to $6 a share. It's even possible that RNA can tag $7.30 if it sustains a high-volume uptrend through $5.50 to $6 a share.

Traders can look to buy RNA off any weakness to anticipate that breakout and simply use a stop that sits right around those double bottom areas at $3.60 to $3.43 a share. One can also buy RNA off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Sarepta Therapeutics

Another biotechnology player that's starting to trend within range of triggering a big breakout trade is Sarepta Therapeutics (SRPT), which discovers and develops RNA-based therapeutics for the treatment of rare and infectious diseases. Its lead product candidate is eteplirsen. This stock has been under attack by the bears so far in 2013, with shares off sharply by 39%

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If you take a look at the chart for Sarepta Therapeutics, you'll notice that this stock recently gapped down sharply from $37.80 to under $12 a share with heavy downside volume. Following that gap down, shares of SRPT have started to rebound and uptrend from $12.12 to its intraday high on Friday of $15.88 a share. That move is quickly pushing shares of SRPT within range of triggering a big breakout trade above its gap down day high.

Traders should now look for long-biased trades in SRPT if it manages to break out above Friday's high of $15.88 to its gap down day high at $16.70 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 2.82 million shares. If that breakout hits soon, then SRPT will set up to re-fill some of its previous gap down zone that started at $37.80 a share. Some possible upside targets if SRPT gets into that gap with volume are $20 to $25 a share.

Traders can look to buy SRPT off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $14.50 a share. One could also buy SRPT off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Tremor Video

One technology-driven video advertising player that's starting to move within range of triggering a big breakout trade is Tremor Video (TRMR), which provides video advertising solutions that enable brand advertisers to connect with consumers across multiple Internet-connected devices including computers, smartphones, tablets and connected TVs. This stock has been hammered by the bears so far in 2013, with shares off by 50%.

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If you take a look at the chart for Tremor Video, you'll notice that this stock recently gapped down sharply from $10.51 to under $4.50 a share with heavy downside volume. Following that move, shares of TRMR went on to hit a new 52-week low of $3.59 a share. Shares of TRMR have now started to rebound off that $3.59 low and off oversold territory. The current relative strength index reading for TRMR is 27, which is an extremely oversold level. Oversold can always get more oversold, but it's also an area where a stock can experience a powerful bounce higher from.

Traders should now look for long-biased trades in TRMR if it manages to break out above some near-term overhead resistance levels at $4.37 to $5.20 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 292,077 shares. If that breakout triggers soon, then TRMR will set up to re-fill some of its previous gap down zone that started at $10.51 a share. Some possible upside targets if TRMR gets into that gap with volume are $6 to $7 a share.

Traders can look to buy TRMR off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $3.87 to $3.59 a share. One can also buy TRMR off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Gentiva Health Services

Another health care player that's quickly moving within range of triggering a near-term breakout trade is Gentiva Health Services (GTIV), which is a provider of home health services and hospice services serving patients throughout the U.S. This stock is off to a hot start in 2013, with shares up sharply by 26%.

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If you look at the chart for Gentiva Health Services, you'll notice that this stock recently bounced strong right off its 200-day moving average of $11.11 and back above its 50-day moving average of $11.72 a share with strong upside volume flows. That move has now pushed shares of GTIV above some near-term overhead resistance levels at $12 to $12.50 a share. Shares of GTIV are now trending within range of triggering another big breakout trade.

Traders should now look for long-biased trades in GTIV if it manages to break out above some near-term overhead resistance at $12.73 to Friday's intraday high of $12.74 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 201,183 shares. If that breakout triggers soon, then GTIV will set up to re-test or possibly take out its 52-week high at $13.85 a share. Any high-volume move above $13.85 will then give GTIV a chance to tag $18 to $20 a share.

Traders can look to buy GTIV off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average at $11.72 a share. One can also buy GTIV off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

ChemoCentryx

My final breakout trading prospect is biotechnology player ChemoCentryx (CCXI), which is engaged in discovering, developing and commercializing orally administered therapeutics to treat autoimmune diseases, inflammatory disorders and cancer. This stock has been hit hard by the sellers during the last six months, with shares off by 54%.

If you look at the chart for ChemoCentryx, you'll notice that this stock has been downtrending badly for the last four months and change, with shares plunging lower from its high of $14.75 to its recent low of $4.57 a share. During that downtrend, shares of CCXI have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of CCXI have now started to rebound off that $4.57 low and it's quickly moving within range of triggering a big breakout trade.

Traders should now look for long-biased trades in CCXI if it manages to break out above its 50-day moving average of $5.25 a share to some more near-term overhead resistance at $5.48 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 606,006 shares. If that breakout triggers soon, then CCXI will set up to re-test or possibly take out its next major overhead resistance levels at $5.90 to $6.45 a share. Any high-volume move above $6.45 to $7 will then give CCXI a chance to re-fill some of its previous gap down zone from September that started at $8.46 a share.

Traders can look to buy CCXI off any weakness to anticipate that breakout and simply use a stop that sits right below its 52-week low of $4.57 a share. One could also buy CCXI off strength once it clears those breakout levels with volume and then simply use a stop that sits a conformable percentage from your entry point.

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

-- Written by Roberto Pedone in Delafield, Wis.

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

Roberto Pedone, based out of Delafield, Wis., 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.