4 Stocks Breaking Out 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 recently.

Ubiquiti Networks

Ubiquiti Networks (UBNT), together with its subsidiaries, offers a portfolio of networking products and solutions for service providers and enterprises. This stock closed up 1.1% at $52.71 in Friday's trading session.

Friday's Volume: 2.19 million
Three-Month Average Volume: 1.25 million
Volume % Change: 85%

From a technical perspective, UBNT spiked modestly higher here right above some near-term support at $48 with above-average volume. This spike on Friday is quickly pushing shares of UBNT within range of triggering a major breakout trade. That trade will hit if UBNT manages to take out Friday's high of $52.91 to its all-time high of $54.91 with high volume.

Traders should now look for long-biased trades in UBNT as long as it's trending above support at $48 or above its 50-day at $46.04 and then once it sustains a move or close above those breakout levels with volume that this near or above 1.25 million shares. If that breakout kicks off soon, then UBNT will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $60 to $65.

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