5 Unusual-Volume Stocks Triggering Breakout Trades

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds dont just look at a stocks 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 its 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.

China Lodging Group

China Lodging Group (HTHT) is a multi-brand hotel group in China with leased, manachised and franchised models. This stock closed up 10.1% to $28.86 in Mondays trading session.

Mondays Volume: 832,000
Three-Month Average Volume: 193,320
Volume % Change: 289%

From a technical perspective, HTHT skyrocketed higher here with strong upside volume. This move pushed shares of HTHT into breakout and new 52-week-high territory, after the stock cleared some key overhead resistance levels at $26.40 to $27. Market players should now look for a continuation move higher in the short-term if HTHT manages to take out Monday's intraday high of $29.35 with high volume.

Traders should now look for long-biased trades in HTHT as long as its trending above Monday's low of $26.41 or above $26, and then once it sustains a move or close above $29.35 with volume that hits near or above 193,230 shares. If that breakout hits soon, then HTHT will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $35 to $37.

China Unicom

China Unicom (CHU) provides cellular and fixed-line voice and related value-added services, broadband and other Internet-related services, ICT services, and business and data communications services in the PRC. This stock closed up 3.7% at $15.39 in Mondays trading session.

Mondays Volume: 1.59 million
Three-Month Average Volume: 510,256
Volume % Change: 204%

From a technical perspective, CHU spiked higher here right above its 200-day moving average of $14.66 with strong upside volume. This move is quickly pushing shares of CHU within range of triggering a near-term breakout trade. That trade will hit if CHU manages to take out Monday's intraday high of $15.62 to some more near-term overhead resistance levels at $15.94 to $16.08 with high volume.

Traders should now look for long-biased trades in CHU as long as its trending above its 200-day at $14.66 and then once it sustains a move or close above those breakout levels with volume that hits near or above 510,256 shares. If that breakout hits soon, then CHU will set up to re-test or possibly take out its next major overhead resistance levels at $16.86 to $17.48. Any high-volume move above those levels will then give CHU a chance to tag $19 to $20.

Home Inns & Hotels Management

Home Inns & Hotels Management (HMIN) develops, leases, operates, franchises and manages economy hotels in China. This stock closed up 3.7% to $42.24 in Mondays trading session.

Mondays Volume: 639,000
Three-Month Average Volume: 295,502
Volume % Change: 120%

From a technical perspective, HMIN spiked notably higher here right above some near-term support at $40 with above-average volume. This stock has uptrending strong for the last five months, with shares moving higher from its low of $24.90 to its recent high of $43.29. During that uptrend, shares of HMIN have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of HMIN within range of triggering a major breakout trade. That trade will hit if HMIN manages to take out Monday's high of $43 to its 52-week high at $43.29 with high volume.

Traders should now look for long-biased trades in HMIN as long as its trending above some near-term support at $40 or above its 50-day at $38.50, and then once it sustains a move or close above those breakout levels with volume that hits near or above 295,502 shares. If that breakout hits soon, then HMIN will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $47 to $50.

Dollar General

Dollar General (DG) is a discount retailer in the U.S., which offers a selection of merchandise, including consumables, seasonal, home products and apparel. This stock closed up 2.5% at $61.59 in Mondays trading session.

Mondays Volume: 7.36 million
Three-Month Average Volume: 2.91 million
Volume % Change: 141%

From a technical perspective, DG spiked notably higher here right above its 50-day moving average of $58.75 with strong upside volume. This stock has been uptrending for the last six months, with shares moving higher from its low of $49.47 to its recent high of $61.82. During that move, shares of DG have been making mostly higher lows and higher highs, which is bullish technical price action. That move has pushed shares of DG within range of triggering a near-term breakout trade. That trade will hit if DG manages to take out Monday's intraday high of $61.64 to its 52-week high of $61.82 with high volume.

Traders should now look for long-biased trades in DG as long as its trending above Mondays low $60.13 or above its 50-day at $58.75, and then once it sustains a move or close above those breakout levels with volume that this near or above 2.91 million shares. If that breakout hits soon, then DG will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $65 to $67.

Mid-Con Energy Partners

Mid-Con Energy Partners (MCEP) owns, operates, acquires, exploits and develops oil and natural gas producing properties in North America. This stock closed up 3.4% at $23.24 in Mondays trading session.

Mondays Volume: 163,000
Three-Month Average Volume: 71,888
Volume % Change: 149%

From a technical perspective, MCEP spiked higher here back above its 200-day moving average of $23.45 with above-average volume. This move is quickly pushing shares of MCEP within range of triggering a near-term breakout trade. That trade will hit if MCEP manages to take out Monday's high of $23.39 to its 50-day moving average of $23.45 with high volume.

Traders should now look for long-biased trades in MCEP as long as its trending above Mondays low of $22.57 or above more near-term support at $21.50, and then once it sustains a move or close above those breakout levels with volume that hits near or above 71,888 shares. If that breakout hits soon, then MCEP will set up to re-test or possibly take out its next major overhead resistance levels at $24.69 to its 52-week high at $27.05.

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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