Faro Technologies

Faro Technologies ( FARO) designs, develops, manufactures, markets portable, software driven, 3D measurement and imaging systems used in a range of manufacturing, industrial, building construction and forensic applications. This stock closed up 2.1% at $37.50 on Tuesday.

Tuesday's Volume: 219,000
Average Volume: 141,039
Volume % Change: 200%

From a technical perspective, FARO gapped higher here right above some near-term support at $36.28 with above-average volume. This stock has been uptrending strong for the last month, with shares moving higher from its low of $32.50 to its recent high of $39.07. During that move, shares of FARO have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed FARO within range of triggering a near-term breakout trade. That trade will hit if FARO manages to clear its 200-day at $37.74 and its 50-day at $38.34 and then once it takes out more resistance at $39.07 with high volume.

Traders should now look for long-biased trades in FARO as long as it's trending above some key near-term support at $36.28 and then once it sustains a move or close above those breakout levels with volume that hits near or above 141,039 shares. If that breakout triggers soon, then FARO will set up to re-test or possibly take out its next major overhead resistance levels at $42 to $44.

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

-- Written by Roberto Pedone in Madison, Wis.

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At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Madison, 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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