4 Tech Stocks Spiking 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.

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 recently.

 

Phoenix New Media (FENG) provides content on an integrated platform across Internet, mobile and TV channels in the People's Republic of China. This stock closed up 5% to $11.68 in Monday's trading session.

Monday's Volume: 1.31 million
Three-Month Average Volume: 859,077
Volume % Change: 90%

From a technical perspective, FENG ripped higher here right above some near-term support at $11 with above-average volume. This move pushed shares of FENG into breakout territory, after the stock took out some near-term overhead resistance at $11.65. Traders should now look for a continuation move higher in the short-term if FENG manages to take out Monday's high of $11.70 with high volume.

Traders should now look for long-biased trades in FENG as long as it's trending above support at $11 or above $10.50 and then once it sustains a move or close above $11.70 with volume that hits near or above 859,077 shares. If that moves come to fruition soon, then FENG will set up to re-test or possibly take out its 52-week high at $13.38.

Control4 (CTRL) provides automation and control solutions for the connected home. This stock closed up 6.6% to $20.71 in Monday's trading session.

Monday's Volume: 758,000
Three-Month Average Volume: 279,438
Volume % Change: 120%

From a technical perspective, CTRL spiked sharply higher here right above some near-term support at $19 with above-average volume. This stock has been downtrending badly for the last month and change, with shares dropping sharply lower from its high of $32.50 to its recent low of $19. During that downtrend, shares of CTRL have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of CTRL now look ready to reverse that downtrend and possibly enter a new uptrend.

Traders should now look for long-biased trades in CTRL as long as it's trending above its recent low of $19 and then once it sustains a move or close above Monday's high of $21.46 with volume that's near or above 279,438 shares. If we get that move soon, then CTRL will set up to re-test or possibly take out its next major overhead resistance levels at $24.50 to $27.

Luxoft (LXFT), together with its subsidiaries, provides software development services and IT solutions to multinational corporations primarily in Western Europe and North America. This stock closed up 3.2% to $41.15 in Monday's trading session.

Monday's Volume: 196,000
Three-Month Average Volume: 96,930
Volume % Change: 179%

From a technical perspective, LXFT spiked higher here right above some near-term support at $38.51 with above-average volume. This spike higher on Monday is starting to push shares of LXFT within range of triggering a major breakout trade. That trade will hit if LXFT manages to take out Monday's high of $41.51 to its all-time high at $43.56 with high volume.

Traders should now look for long-biased trades in LXFT as long as it's trending above some near-term support at $38.51 or its 50-day at $37.78 and then once it sustains a move or close above those breakout levels with volume that hits near or above 96,930 shares. If we get that move soon, then LXFT will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $48 to $50.

Dun & Bradstreet (DNB) provides commercial information and insight on businesses worldwide. This stock closed up 4.3% to $99.72 in Monday's trading session.

Monday's Volume: 1.76 million
Three-Month Average Volume: 484,302
Volume % Change: 312%

From a technical perspective, DNB spiked sharply higher here right above some near-term support at $94.27 with above-average volume. This stock recently formed a double bottom chart pattern at $93.85 to $94.27. Following that bottom, shares of DNB have now spiked higher and broke out above some near-term overhead resistance at $99.04. Market players should now look for a continuation move higher in the short-term if DNB manages to take out Monday's high of $100.45 with strong volume.

Traders should now look for long-biased trades in DNB as long as it's trending above Monday's low of $95.96 and then once it sustains a move or close above $100.45 with volume that hits near or above 484,302 shares. If that move materializes soon, then DNB will set up to re-fill some of its previous gap-down-day zone from this month that started at $115. Some possible upside targets if DNB gets into that gap with volume are its 200-day at $105.45 to $110.

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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