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Kongzhong ( KONG) provides digital entertainment services in the People’s Republic of China. This stock closed up 5.8% at $10.30 in Monday's trading session.

Monday's Volume: 449,000
Three-Month Average Volume: 258,498
Volume % Change: 85%

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From a technical perspective, KONG ripped sharply higher here right above some near-term support at $8.97 with above-average volume. This stock has been basing and trending sideways for the last month, with shares moving between $8.97 on the downside and $10.92 on the upside. Shares of KONG are now starting to move within range of triggering a major breakout trade above the upper-end of its recent sideways trading chart pattern. That breakout will hit if KONG manages to take out some near-term overhead resistance levels at $10.50 to its 52-week high at $10.92 with high volume.

Traders should now look for long-biased trades in KONG as long as it's trending above some key near-term support levels at $9.50 or above $8.97 and then once it sustains a move or close above those breakout levels with volume that's near or above 258,498 shares. If that breakout hits soon, then KONG will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are $14 to $15.

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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