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 point, then it's free to find new buyers and players who can ultimately push the stock significantly higher.
Breakout candidates are something that I . These are also the exact type of stocks that
I frequently flag 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 . You don't have to concern yourself with anything else. The charts do all the talking.
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.
Pioneer Energy Services
One energy player that's starting to spike within range of triggering a big breakout trade is Pioneer Energy Services () , which provides land-based drilling and production services to oil and gas exploration and production companies in the U.S. and Colombia. This stock has been on fire over the last six months, with shares exploding higher by 200%.
If you take a look at the chart for Pioneer Energy Services, you'll notice that this stock ripped sharply higher on Thursday right off its 20-day moving average of $3.38 a share with strong upside volume flows. Volume for that trading session registered over 1.40 million shares, which is well above its three-month average action of 1.03 million shares. This high-volume spike to the upside is now quickly pushing shares of Pioneer Energy Services within range of triggering a near-term breakout trade.
Traders should now look for long-biased trades in Pioneer Energy Services if it manages to break out above Thursday's intraday high of $3.80 a share and then above its 50-day moving average of $3.97 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 1.03 million shares. If that breakout fires off soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $4.40 to around $5 a share.
Traders can look to buy Pioneer Energy Services off weakness to anticipate that breakout and simply use a stop that sits right around its 20-day moving average of $3.38 a share or near more support at $3.21 a share. One can also buy this stock off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
Civeo
A business services player that's starting to move within range of triggering a big breakout trade is Civeo () , which provides remote site accommodation, logistics and facility management services to the natural resource industry in Australia, Canada...
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