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 recently.

Under Armour

Under Armour (UA), together with its subsidiaries, develops, markets and distributes branded performance apparel, footwear and accessories for men, women and youth primarily in North America, Europe, the Middle East, Africa, Asia and Latin America. This stock closed up 3.6% to $48.89 in Wednesday's trading session.

Wednesday's Volume: 42.16 million
Three-Month Average Volume: 3.77 million
Volume % Change: 1207%

From a technical perspective, UA jumped higher here right above some near-term support at $46 with monster upside volume. This spike higher on Wednesday also occurred right above its 200-day moving average of $44.32. Market players should now look for a continuation move higher in the short-term if UA manages to take out Wednesday's high of $49.89 with high volume.

Traders should now look for long-biased trades in UA as long as it's trending above Wednesday's low of $47.12 or above its 200-day at $44.32 and then once it sustains a move or close above $49.89 with volume that hits near or above 3.77 million shares. If that move starts soon, then UA will set up to re-test or possibly take out its next major overhead resistance levels at $55 to its 50-day moving average of $55.68. Any high-volume move above those levels will then give UA a chance to tag its next major overhead resistance levels at $60 to its 52-week high at $62.40.

RingCentral

RingCentral (RNG) provides software-as-a-service solutions for business communications primarily in the U.S. This stock closed up 4.4% at $15.16 in Wednesday's trading session.

Wednesday's Volume: 2.16 million
Three-Month Average Volume: 332,826
Volume % Change: 659%

From a technical perspective, RNG spiked sharply higher here off its 52-week low of $12.90 with monster upside volume. This stock has been downtrending badly for the last two months, with shares moving lower from its high of $23.65 to its 52-week low of $12.90. During that downtrend, shares of RNG have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of RNG are now starting to bounce off its 52-week low with heavy upside volume. Market players should now look for a continuation move higher in the short-term if RNG manages to take out Wednesday's high of $15.71 with strong volume.

Traders should now look for long-biased trades in RNG as long as it's trending above $14 and then once it sustains a move or close above $15.71 with volume that this near or above 332,826 shares. If that move gets underway soon, then RNG will set up to re-test or possibly take out its next major overhead resistance levels at $16.88 to $18.25. Any high-volume move above those levels will then give RNG a chance tag or take out its 50-day moving average of $19.18.

Plantronics

Plantronics (PLT) designs, manufactures and markets lightweight communications headsets, telephone headset systems and accessories for the business and consumer markets under the Plantronics brand worldwide. This stock closed up 4.5% at $43.57 in Wednesday's trading session.

Wednesday's Volume: 656,191
Three-Month Average Volume: 192,095
Volume % Change: 245%

From a technical perspective, PLT spiked sharply higher here right above some near-term support at $41.21 with above-average volume. This stock recently formed a double bottom chart pattern at $41.34 to $41.21. Since forming that bottom, shares of PLT have started to spike higher and move within range of triggering a near-term breakout trade. That trade will hit if PLT manages to take out its 50-day moving average of $43.99 to its 200-day moving average of $44.56 with high volume.

Traders should now look for long-biased trades in PLT as long as it's trending above those double bottom support levels and then once it sustains a move or close above those breakout levels with volume that's near or above 192,095 shares. If that breakout triggers soon, then PLT will set up to re-test or possibly take out its next major overhead resistance levels at $45.47 to $46.73. Any high-volume move above those levels will then give PLT a chance to re-fill some of its previous gap-down-day zone from last November that started just above $49.

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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