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TheStreet Open House

3 Stocks Breaking Out on Unusual Volume

Stock quotes in this article: CG, NOW, WUBA

ServiceNow

ServiceNow (NOW) provides cloud-based services to automate enterprise IT operations primarily in North America, Europe, the Middle East, Africa, the Asia Pacific and internationally. This stock closed up 7.9% at $54.88 in Wednesday's trading session.

Wednesday's Volume: 4.49 million
Three-Month Average Volume: 2.01 million
Volume % Change: 153%

From a technical perspective, NOW ripped sharply higher here back above its 200-day moving average of $53.77 with strong upside volume. This stock has been downtrending badly for the last month, with shares moving lower from its high of $71.80 to its recent low of $49.21. During that move, shares of NOW have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of NOW are now starting to spike higher off oversold levels and the stock is quickly approaching a near-term breakout trade. That trade will hit if NOW manages to take out Wednesday's high of $55 to some more near-term resistance at $56 with high volume.

Traders should now look for long-biased trades in NOW as long as it's trending above $52 and then once it sustains a move or close above those breakout levels with volume that hits near or above 2.01 million shares. If that breakout triggers soon, then NOW will set up to re-test or possibly take out its next major overhead resistance levels at $62 to its 50-day moving average of $64.21.

Carlyle Group

Carlyle Group (CG) is an investment firm specializing in direct and fund of fund investments. This stock closed up 3.3% to $34.48 in Wednesday's trading session.

Wednesday's Volume: 1.33 million
Three-Month Average Volume: 666,063
Volume % Change: 139%

From a technical perspective, CG trended higher here back above its 50-day moving average of $34.05 with above-average volume. This move is starting to push shares of CG within range of triggering a near-term breakout trade. That trade will hit if CG manages to take out Wednesday's high of $34.95 to some more near-term overhead resistance at $35.99 with high volume.

Traders should now look for long-biased trades in CG as long as it's trending above Wednesday's low of $33.62 or above more support at $32.51 and then once it sustains a move or close above those breakout levels with volume that hits near or above 666,063 shares. If that breakout gets underway soon, then CG will set up to re-test or possibly take out its next major overhead resistance levels at $37.92 to its 52-week high at $39.38.

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume 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.
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