Trading stocks that trigger major breakouts with volume can lead to massive profits. Just take a look at a hot breakout setup I flagged last week with Tesla Inc. (TSLA) . That breakout setup ended up triggering after Tesla cleared some key resistance levels around $327 a share. Since then, this stock has exploded higher and touched a high of $376.87 a share.
I frequently flag high-probability setups, which are breakout plays and stocks that are acting technically bullish. What’s great about breakout trading is that you only focus on trends, price and volume. You don’t have to concern yourself with anything else. The charts do all the talking.
With that in mind, here’s a look at five stocks that are setting up to break out and possibly explode higher from current levels.
Seattle Genetics Inc.
If you take a look at the chart for Seattle Genetics Inc. (SGEN) , you’ll notice that this stock has started to trend back above both its 50-day moving average of $64.65 and its 20-day at $64.95 a share. This bump to the upside is quickly pushing this biotech stock within range of triggering a major breakout trade.
Traders should now look for long-biased trades in Seattle Genetics if it manages to break out above a key downtrend line that will trigger over $66.35 to $68.59 with strong upside volume. Look for a sustained move above those levels with volume that registers near or above its three-month average of 662,428 shares. If that breakout fires off soon, then this stock will set up to re-test or possibly take out its next key resistance level at $71.32 to its 52-week high of $75.36 a share.