3 Stocks Rising 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.

Core-Mark

Core-Mark ( CORE) markets fresh and broad-line supply solutions to the convenience retail industry in North America. This stock closed up 2% at $73.81 in Monday's trading session.

Monday's Volume: 119,000
Three-Month Average Volume: 50,381
Volume % Change: 125%

From a technical perspective, CORE trended modestly higher here right above its 50-day moving average of $70.74 with above-average volume. This stock has been uptrending strong for the last six months, with shares moving higher from its low of $58.47 to its recent high of $76.20. During that move, shares of CORE have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of CORE within range of triggering a near-term breakout trade. That trade will hit if CORE manages to take out Monday's high of $74.31 to its 52-week high of $76.20 with high volume.

Traders should now look for long-biased trades in CORE as long as it's trending above Monday's low of $72.02 or above its 50-day at $70.74 and then once it sustains a move or close above those breakout levels with volume that's near or above 50,381 shares. If that breakout hits soon, then CORE will set up to enter new 52-week high territory above $76.20, which is bullish technical price action. Some possible upside targets off that breakout are $83 to $85.

Chicago Bridge & Iron

Chicago Bridge & Iron ( CBI) provides conceptual design, technology, engineering, procurement, fabrication, construction and commissioning services to customers in the energy, petrochemical and natural resource industries. This stock closed up 2.4% at $78.61 in Monday's trading session.

Monday's Volume: 2.06 million
Three-Month Average Volume: 1.08 million
Volume % Change: 85%

From a technical perspective, CBI spiked higher here and broke out above some near-term overhead resistance at $78 with above-average volume. This stock has been uptrending strong for the last three months, with shares moving higher from its low of $59.20 to its recent high of $80.14. During that uptrend, shares of CBI have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of CBI within range of triggering another big breakout trade. That trade will hit if CBI manages to take out Monday's high of $79 to its 52-week high of $80.14 with high volume.

Traders should now look for long-biased trades in CBI as long as it's trending above some near-term support at $76 or above its 50-day at $74.30 and then once it sustains a move or close above those breakout levels with volume that's near or above 1.08 million shares. If that breakout hits soon, then CBI 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.

CaesarStore Sdot-Yam

CaesarStore Sdot-Yam ( CSTE) manufactures engineered quartz surfaces. This stock closed up 5.7% at $50.93 in Monday's trading session.

Monday's Volume: 588,000
Three-Month Average Volume: 244,927
Volume % Change: 143%

From a technical perspective, CSTE spiked sharply higher here right above some near-term support at $45.96 with strong upside volume. This move pushed shares of CSTE into breakout and new 52-week-high territory, since the stock took out some near-term overhead resistance at $50.23. Market players should now look for a continuation move higher in the short-term if CSTE can manage to clear Monday's high of $52.45 with high volume.

Traders should now look for long-biased trades in CSTE as long as it's trending above Monday's low of $47.19 or above more support at $45.96 and then once it sustains a move or close above Monday's high of $52.45 with volume that's near or above 244,927 shares. If we get that move soon, then CSTE will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $55 to $60.

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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