8 Stocks Rising on Monster Volume

WINDERMERE, Fla. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Many times when above average volume moves into equity it precedes a large spike in volatility.

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

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Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

With that in mind, let's take a look at a number of stocks rising on unusual volume today.

TiVo

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TiVo ( TIVO) is a developer and provider of software, hardware, and services. The stock is trading up 4% at $11.68 in recent trading.

Today's Volume: 3.6 million

Average Volume: 2.2 million

Volume % Change: 280%

Shares of TiVo are ripping higher today after an article in Barron's made the case that it is undervalued and could be a takeover target. The article said that TIVO could be an attractive buyout target for Google ( GOOG), Microsoft ( MSFT) and others with possible deal price in the mid-$20s.

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From a technical standpoint, TiVo is gapping up strong today and breaking out above some past overhead resistance at $11.27 to 11.333 on heavy volume.

Market players should now watch for the next breakout to trigger once TiVo takes out $12.65 with volume. Look for volume that's near or above 2,244,710 shares if $12.65 is taken out on a closing basis. If we get that action, then TiVo will have a have a chance to fill a big gap down in price from $17.

AeroVironment

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AeroVironment ( AVAV) is engaged in the design, development, production and support of unmanned aircraft systems and efficient energy systems for various industries and governmental agencies. The stock is trading up 5.3% at $30.29 in recent trading.

Today's Volume: 410,000

Average Volume: 173,032

Volume % Change: 391%

From a technical standpoint, AVAV has started to spike sharply back above its 50-day and 200-day moving averages today on heavy volume.

Traders should watch for AVAV to sustain a high-volume move and close above some near-term overhead resistance at $33.34 to $34.28. If we get that action soon, then AVAV has a chance to make a run at its July high of $36.49.

Look for volume on a move above $33.34 to $34.28 that registers near or above 173,032 shares.

Zoltek

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Zoltek ( ZOLT) is an applied technology and advanced materials company. The stock is trading up 10.8% at $14.53 in recent trading.

Today's Volume: 1.3 million

Average Volume: 334,511

Volume % Change: 503%

From a technical standpoint, ZOLT has made a monster move on huge volume in the past few trading sessions with shares trading up from under $10 to its current price of around $14.50. This big run has now pushed ZOLT into overbought territory since the stock's relative strength index (RSI) is 88.

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I would be careful initiating new long positions on ZOLT with such a high RSI reading, unless they are for very short-term intraday trades. Keep in mind that ZOLT is also close to testing some major overhead resistance at $16.06.

Energy XXI

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Energy XXI ( EXXI) is an independent oil and natural gas exploration and production company with operations focused in the United States Gulf Coast and the Gulf of Mexico. This stock is trading up 4.6% at $36.75 in recent trading.

Today's Volume: 895,000

Average Volume: 867,737

Volume % Change: 86%

From a technical standpoint, EXXI is trading up sharply today on decent volume above some past overhead resistance at $35.36 to $35.41. This move now setups EXXI to re-test its 2011 high of $37.20.

If we get that re-test soon, then traders should look to play the breakout above $37.20 if it comes on high-volume. Look for volume on a move above $37.20 that registers near or well above 867,737 shares. If we get that action, then this stock has a great chance to re-test its all-time high of around $40.

Energy XXI shows up on a recent list of 4 Upgraded, Undervalued Stocks.

IPG Photonics

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IPG Photonics ( IPGP) is a vertically integrated developer and manufacturer of a line of fiber lasers for diverse applications in numerous markets. This stock is trading up 1.7% at $55.21 in recent trading.

Today's Volume: 650,000

Average Volume: 599,518

Volume % Change: 131%

From a technical standpoint, IPGP is starting to flirt with a couple of major breakouts. That first breakout is a move above some near-term overhead resistance at $55.15, and that second breakout is above its 200-day moving average of 55.82.

If IPGP can sustain a high-volume move and close above those two breakout levels, then this stock has a great chance to re-test its October high of $58.16. Look for volume on a close above those levels that's near or well above 599,518 shares.

Questcor Pharmaceuticals

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Questcor Pharmaceuticals ( QCOR) is a biopharmaceutical company. Questcor primary product is H.P. Acthar Gel, an injectable drug that is approved by the FDA. This stock is trading up 2.8% at $37.66 in recent trading.

Today's Volume: 2 million

Average Volume: 1.9 million

Volume % Change: 84%

From a technical standpoint, QCOR has started to find some buying interest recently near some previous support levels at around $33.66 to $34.15. Buyers have stepped into the stock near those levels and have pushed shares up to its current price of around $37.60.

Market players should now watch for a breakout trade to trigger if QCOR can take out $38.34 and then its 50-day moving average of $40.30 on heavy volume. Look for volume on a move above those levels that registers near or above 1,933,260 shares. If we get that action soon, then this stock has a great chance to re-test $44.18 to $45.50 in the near future.

Questcor was one of 5 Drug Stocks Winners of 2011.

Jazz Pharmaceuticals

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Jazz Pharmaceuticals ( JAZZ), a specialty pharmaceutical company, engages in the identification, development, and commercialization of pharmaceutical products to meet unmet medical needs. This stock is trading up 5.3% at $50.52 in recent trading.

Today's Volume: 871,000

Average Volume: 773,944

Volume % Change: 103%

From a technical standpoint, JAZZ is starting to trigger a breakout trade today now that this stock is moving above some near-term overhead resistance at $50.46 on decent volume. This is a very big move for JAZZ since it's pushing the stock into all-time high territory.

Traders should continue to look for long biased trades in JAZZ if it can manage to sustain a high-volume move and close above $50.46. If we get that action today, then this stock has a good chance of hitting $55 in the near future, as long as it doesn't trade back below $50.46 to $49.14.

Randgold Resources

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Randgold Resources ( GOLD) is engaged in gold mining, exploration and related activities. This stock is trading up 2.5% at $118.70 in recent trading.

Today's Volume: 512,000

Average Volume: 577,550

Volume % Change: 80%

From a technical standpoint, GOLD is quickly approaching a major breakout trade here now that this stock is within range of clearing some near-term overhead resistance at $120.73. Keep in mind that any move for GOLD above $120.73 will push this stock into all-time high territory, which is bullish price action.

Market players should now look for long biased trades in GOLD if it can take out $120.73 on heavy volume. Look for volume on a move above that level that registers near or above 577,550 shares.

To see more stocks rising on unusual volume, check out the Stocks Rising On Unusual Volume 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 stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.

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