3 Stocks Spiking 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.

Zebra Technologies

Zebra Technologies (ZBRA) manufactures and sells printers and related products worldwide. This stock closed up 1.9% to $71.92 in Friday's trading session.

Friday's Volume: 1.06 million
Three-Month Average Volume: 505,032
Volume % Change: 96%

From a technical perspective, ZBRA trended modestly higher here and broke out above some near-term overhead resistance at $71.87 with above-average volume. This move is quickly pushing shares of ZBRA within range of triggering another near-term breakout trade. That trade will hit if ZBRA manages to take out Friday's high of $72.02 to its 52-week high at $72.76 with high volume.

Traders should now look for long-biased trades in ZBRA as long as it's trending above Friday's low of $69.84 or above its 50-day at $68.65 and then once it sustains a move or close above those breakout levels with volume that hits near or above 505,032 shares. If that breakout materializes soon, then ZBRA will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout at $80 to $85.

Park City Group

Park City Group (PCYG), a software-as-a-service provider, designs, develops, markets, and supports proprietary software products for the consumer goods supply chain. This stock closed up 8.5% to $11.09 in Friday's trading session.

Friday's Volume: 224,000
Three-Month Average Volume: 93,527
Volume % Change: 188%

From a technical perspective, PCYG ripped sharply higher here and broke out above some near-term overhead resistance levels at $10.45 to $10.88 with above-average volume. This move is quickly pushing shares of PCYG within range of triggering another big breakout trade. That trade will hit if PCYG manages to take out Friday's high of $11.16 to it 52-week high at $11.61 with high volume.

Traders should now look for long-biased trades in PCYG as long as it's trending above Friday's low of $10.29 or above its 50-day at $9.75 and then once it sustains a move or close above those breakout levels with volume that hits near or above 93,527 shares. If that breakout triggers soon, then PCYG will set up to enter new 52-week-high territory above $11.61, which is bullish technical price action. Some possible upside targets off that breakout are $14 to $15.

NeuStar

NeuStar (NSR) provides technology and directory services to customers pursuant to various private commercial and government contracts worldwide. This stock closed up 4.6% at $26.63 in Friday's trading session.

Friday's Volume: 4.88 million
Three-Month Average Volume: 1.32 million
Volume % Change: 312%

From a technical perspective, NSR ripped higher here right above its 52-week low of $25.14 with strong upside volume. This stock has been downtrending badly for the last two months, with shares moving lower from its high of $36.75 to its recent low of $25.14. During that move, shares of NSR have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of NSR are now starting to rebound off its 52-week low with heavy upside volume. This move could be signaling that NSR is ready to reverse its bearish trend in the short-term.

Traders should now look for long-biased trades in NSR as long as it's trending above its 52-week low of $25.14 and then once it sustains a move or close above Friday's high of $26.87 to $28 with volume that hits near or above 1.32 million shares. If that move gets underway soon, then NSR will set up to rebound back towards its next major overhead resistance levels at $29.75 to its 50-day moving average of $32.02. Any high-volume move above those levels will then give NSR a chance to tag $34 to $34.75.

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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