3 Stocks Spiking 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.

AAON

AAON (AAON), together with its subsidiaries, manufactures and sells air-conditioning and heating equipment in the U.S. and Canada. This stock closed up 9.2% at $31.57 in Monday's trading session.

Monday's Volume: 269,000
Three-Month Average Volume: 130,016
Volume % Change: 105%

From a technical perspective, AAON gapped up sharply higher here and broke out above some key near-term overhead resistance levels at $29.47 to $31.27 with heavy upside volume. Market players should now look for a continuation move higher in the short-term if AAON manages to clear Monday's intraday high of $31.92 with strong upside volume.

Traders should now look for long-biased trades in AAON as long as it's trending above Monday's low of $29.97 or above its 50-day at $28.27 and then once it sustains a move or close above $31.92 with volume that hits near or above 130,016 shares. If that move gets started soon, then AAON will set up to re-test or possibly take out its next major overhead resistance levels at its 52-week high of $34.27.

Skechers USA

Skechers USA (SKX) designs, develops, markets and distributes footwear for men, women and children, as well as performance footwear for men and women under the Skechers GO brand name. This stock closed up 2.9% at $41.12 in Monday's trading session.

Monday's Volume: 853,000
Three-Month Average Volume: 675,310
Volume % Change: 50%

From a technical perspective, SKX ripped higher here right above some near-term support at $38 with above-average volume. This stock has been trending sideways and consolidating for the last few weeks, with shares moving between $38 on the downside and $42.31 on the upside. This spike higher on Monday is starting to push shares of SKX within range of triggering a big breakout trade above the upper-end of its recent sideways trading chart pattern. That trade will hit if SKX manages to take out Monday's high of $41.15 and then once it clears its 52-week high of $42.31 with high volume.

Traders should now look for long-biased trades in SKX as long as it's trending above some key near-term support at $38 and then once it sustains a move or close above those breakout levels with volume that's near or above 675,310 shares. If that breakout triggers soon, then SKX will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $45 to $50.

Akorn

Akorn (AKRX) manufactures and markets diagnostic and therapeutic ophthalmic pharmaceuticals, niche hospital drugs and injectable pharmaceuticals in the U.S. and internationally. This stock closed up 2.6% at $25.40 in Monday's trading session.

Monday's Volume: 1.19 million
Three-Month Average Volume: 945,483
Volume % Change: 50%

From a technical perspective, AKRX spiked notably higher here right above its 50-day moving average of $23.33 with above-average volume. This spike higher on Monday pushed shares of AKRX into breakout territory, since the stock took out some near-term overhead resistance at $25.09. Market players should now look for a continuation move higher in the short-term if AKRX manages to clear Monday's intraday high of $25.47 with strong upside volume flows.

Traders should now look for long-biased trades in AKRX as long as it's trending above its 50-day moving average at $23.33 and then once it sustains a move or close above Monday's high of $25.47 with volume that's near or above 945,483 shares. If that move starts soon, then AKRX will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $28. If that level gets taken out with volume, then AKRX will set up to tag or trend above $30.

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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