3 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.

Burlington Stores

Burlington Stores (BURL) operates as a retailer of branded apparel products in the U.S. This stock closed up 2.9% at $28.20 in Friday's trading session.

Friday's Volume: 1.37 million
Three-Month Average Volume: 476,944
Volume % Change: 213%

From a technical perspective, BURL trended higher here back above its 50-day moving average of $27.83 with strong upside volume. This move is quickly pushing shares of BURL within range of triggering a near-term breakout trade. That trade will hit if BURL manages to take out Friday's high of $28.42 to some more near-term overhead resistance at $28.82 with strong volume.

Traders should now look for long-biased trades in BURL as long as it's trending above $27 or $26 and then once it sustains a move or close above those breakout levels with volume that this near or above 476,944 shares. If that breakout starts soon, then BURL will set up to re-test or possibly take out its next major overhead resistance levels at $31 to its 52-week high at $32.98.

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