4 Stocks Breaking Out on Unusual 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.

Visteon

Visteon ( VC) is a supplier of automotive systems, modules and components to original equipment manufacturers. This stock closed up 1.3% at $77.90 in Monday's trading session.

Monday's Volume: 677,000
Three-Month Average Volume: 480,994
Volume % Change: 75%

From a technical perspective, VC trended modestly higher here right above its 50-day moving average of $75.82 with above-average volume. This move is quickly pushing shares of VC within range of triggering a near-term breakout trade. That trade will hit if VC manages to take out some near-term overhead resistance at $78.09 to its 52-week high at $79.62 with high volume.

Traders should now look for long-biased trades in VC as long as it's trending above Monday's low of $76.77 or above its 50-day at $75.82 and then once it sustains a move or close above those breakout levels with volume that's near or above 480,994 shares. If that breakout hits soon, then VC will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $85 to $87.

Adept Technology

Adept Technology ( ADEP) is engaged in the development of intelligent robotics and advanced control systems. This stock closed up 15.9% at $10.96 in Monday's trading session.

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