4 Stocks Spiking on Big 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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Travelzoo ( TZOO) is a global Internet media company that informs over 24 million subscribers worldwide, as well as millions of Web site users, about travel and entertainment deals available from thousands of companies. This stock is trading up 1.9% at $28.94 in recent trading.

Today's Volume: 123,000
Average Volume: 97,437
Volume % Change: 124%

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From a technical perspective, TZOO is bouncing higher here right off some near-term support at $28 with above-average volume. This stock has been uptrending strong for the last two months, with shares soaring higher from its low of $20.94 to its recent high of $29.80. During that move, shares of TZOO have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of TZOO within range of triggering a near-term breakout trade. That trade will hit if TZOO manages to take out its 52-week high at $29.80 with high volume.

Traders should now look for long-biased trades in TZOO as long as it's trending above $28 or above more near-term support at $27.06 and then once it sustains a move or close above $29.80 with volume that hits near or above 97,437 shares. If that breakout triggers soon, then TZOO will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $32 to $35.

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