4 Stocks Rising 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.

ICICI Bank

ICICI Bank (IBN), together with its subsidiaries, provides banking and financial services to corporate and retail customers in 19 countries, including India. This stock closed up 3.6% to $44.26 in Monday's trading session.

Monday's Volume: 5.33 million
Three-Month Average Volume: 1.82 million
Volume % Change: 226%

From a technical perspective, IBN ripped sharply higher here right above some near-term support at $42.37 with heavy upside volume. This stock has been trending sideways for the last month and change, with shares moving between $41.54 on the downside and $44.95 on the upside. This spike higher on Monday is starting to push shares of IBN within range of triggering a big breakout trade above the upper-end of its recent range. That trade will hit if IBN manages to take out some near-term overhead resistance levels at $44.70 to $44.80 and then once it clears more key resistance at $44.95 with high volume.

Traders should now look for long-biased trades in IBN as long as it's trending above some key near-term support levels at $42.37 or above its 50-day at $41.62 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.82 million shares. If that breakout triggers soon, then IBN will set up to re-test or possibly take out its 52-week high at $48.44.

RCS Capital

RCS Capital (RCAP), through its subsidiaries, is engaged in the wholesale broker-dealer, and investment banking and capital markets business activities. This stock closed up 6.8% to $35.87 in Monday's trading session.

Monday's Volume: 159,000
Three-Month Average Volume: 75,465
Volume % Change: 147%

From a technical perspective, RCAP ripped higher here right above its 50-day moving average of $30.02 with strong upside volume. This move is quickly pushing shares of RCAP within range of triggering a major breakout trade. That trade will hit if RCAP manages to take out some near-term overhead resistance levels at $37.56 to $39.40 and then once it clears its 52-week high at $39.98 with high volume.

Traders should now look for long-biased trades in RCAP as long as it's trending above its 50-day at $32.02 and then once it sustains a move or close above those breakout levels with volume that hits near or above 75,465 shares. If that breakout hits soon, then RCAP will set up to enter new all-time-high territory above $39.98, which is bullish technical price action. Some possible upside targets off that breakout are $45 to $50.

Hi-Crush Partners

Hi-Crush Partners  (HCLP) operates as a producer and supplier of monocrystalline sand. This stock closed up 2.1% at $41.83 in Monday's trading session.

Monday's Volume: 601,000
Three-Month Average Volume: 252,000
Volume % Change: 164%

From a technical perspective, HCLP trended higher here with above-average volume. This stock has been uptrending for the last month, with shares moving higher from its low of $36.51 to its intraday high of $42. During that move, shares of HCLP have been making mostly higher lows and higher highs, which is bullish technical price action. This spike higher on Monday is starting to push shares of HCLP within range of triggering a major breakout trade. That trade will hit if HCLP manages to take out Monday's high of $42 to its all-time high of $43.97 with high volume.

Traders should now look for long-biased trades in HCLP as long as it's trending above its 50-day at $39.24 and then once it sustains a move or close above those breakout levels with volume that hits near or above 252,000 shares. If that breakout materializes soon, then HCLP will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $50 to $55.

Sotheby's 

Sotheby's (BID) operates as an auctioneer of authenticated fine art, decorative art, and jewelry. This stock closed up 3.2% to $44.80 in Monday's trading session.

Monday's Volume: 3.62 million
Three-Month Average Volume: 1.36 million
Volume % Change: 157%

From a technical perspective, BID spiked notably higher here back above its 50-day moving average of $43.89 and right into its 200-day moving average of $44.62 with strong upside volume. This stock has been uptrending over the last few weeks, with shares moving higher from its low of $38.83 to its intraday high of $44.86. During that move, shares of BID have been making mostly higher lows and higher highs, which is bullish technical price action. Market players should now look for a continuation move higher in the short-term if BID manages to take out Monday's intraday high of $44.86 with strong upside volume.

Traders should now look for long-biased trades in BID as long as it's trending above Monday's low of $42.57 or above $42 and then once it sustains a move or close above $44.86 with volume that hits near or above 1.36 million shares. If that move starts soon, then BID will set up to re-test or possibly take out its next major overhead resistance levels at $47 to $49, or even $50 to $51.

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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