5 Stocks Spiking on Unusual Volume

MADISON, Wis. ( 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. Often when above-average volume moves into an 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 several stocks rising on unusual volume today.

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Alon USA Partners LP

Alon USA Partners LP ( ALDW) owns and operates refining and petroleum products marketing business. It refines crude oil into finished products and market in West Texas, Central Texas, Oklahoma, New Mexico and Arizona. This stock is trading up 2.5% at $25.44 in recent trading.

Today's Volume: 538,000
Average Volume: 317,861
Volume % Change: 191%

Shares of ALDW are trending higher in front of its earnings report, which is set to be released on May 8 after the market close.

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From a technical perspective, ALDW is spiking higher here back above its 50-day moving average at $25.43 with above-average volume. This move is quickly pushing shares of ALDW within range of triggering a near-term breakout trade. That trade will hit if ALDW manages to take out some near-term overhead resistance at $26.68 to $26.88 with high volume. At last check, ALDW his hit an intraday high of $26.85 and volume is well above its three-month average action of 317,861 shares.

Traders should now look for long-biased trades in ALDW as long as it's trending above its 50-day at $25.43 or above today's low of $24.36 and then once it sustains a move or close above those breakout levels with volume that hits near or above 317,861 shares. If that breakout triggers soon, then ALDW will set up to re-test or possibly take out its next major overhead resistance levels at $27.95 to $29.

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