4 Stocks Triggering Breakouts on Big Volume

DELAFIELD, 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.

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

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.

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

TearLab

TearLab ( TEAR) is an in-vitro diagnostic company. This stock closed up 8.5% at $11.48 in Friday's trading session.

Friday's Volume: 1.26 million
Three-Month Average Volume: 562,768
Volume % Change: 165%

From a technical perspective, TEAR ripped sharply higher here right above its 200-day moving average of $9.77 with strong upside volume. This move is quickly pushing shares of TEAR within range of triggering a big breakout trade above a key downtrend line that dates back to late July. That breakout will hit if TEAR manages to take out Friday's high of $11.50 and then once it clears more near-term overhead resistance at $12.39 with high volume.

Traders should now look for long-biased trades in TEAR as long as it's trending above Friday's low of $10.22 or above its 200-day at $9.77 and then once it sustains a move or close above those breakout levels with volume that hits near or above 562,768 shares. If that breakout hits soon, then TEAR will set up to re-test or possibly take out its next major overhead resistance levels at $13.80 to its 52-week high at $15.18.

Constellium

Constellium ( CSTM) designs and manufacture rolled and extruded aluminium products, primarily for to aerospace, automotive and packaging markets. This stock closed up 9.4% to $18.85 in Friday's trading session.

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