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.

Super Micro Computer

Super Micro Computer (SMCI), together with its subsidiaries, develops and provides high-performance server solutions based on modular and open-standard architecture in the U.S. and internationally. This stock closed up 10.1% to $19.76 in Friday's trading session.

Friday's Volume: 989,504
Three-Month Average Volume: 476,478
Volume % Change: 121%

From a technical perspective, SMCI ripped sharply higher here right off its 50-day moving average of $18.52 with above-average volume. This move pushed shares of SMCI into breakout territory, since the stock took out some near-term overhead resistance at $18.99. Market players should now look for a continuation move to the upside in the short-term if SMCI can manage to take out Friday's intraday high of $19.88 with high volume.

Traders should now look for long-biased trades in SMCI as long as it's trending above its 50-day at $18.52 and then once it sustains a move or close above $19.88 with volume that hits near or above 476,478 shares. If that move kicks off soon, the SMCI will set up to re-test or possibly take out its next major overhead resistance levels at $20.60 to $21.12. Any high-volume move above those levels will then give SMCI a chance to tag its next major overhead resistance levels at $21.97 to $22.85.



FireEye

FireEye (FEYE) provides products and services for detecting, preventing and resolving advanced cybersecurity threats. This stock closed up 2.9% to $27.89 in Friday's trading session.

Friday's Volume: 8.43 million
Three-Month Average Volume: 5.22 million
Volume % Change: 195%

From a technical perspective, FEYE bounced higher here right above its 52-week low of $25.58 with strong upside volume flows. This move is quickly pushing shares of FEYE within range of triggering a near-term breakout trade. That trade will hit if FEYE manages to take out some key near-term overhead resistance levels at $29.08 to $29.80 with high volume.

Traders should now look for long-biased trades in FEYE as long as it's trending above Friday's low of $26.30 or above its 52-week low of $25.58 and then once it sustains a move or close above those breakout levels with volume that hits near or above 5.22 million shares. If that breakout hits soon, then FEYE will set up to re-test or possibly take out its recent gap-down-day high of $31.25. Any high-volume move above that level will then give FEYE a chance to re-fill some of its recent gap-down-day zone that started at $40.75.

Hornbeck Offshore Services

Hornbeck Offshore Services (HOS), through its subsidiaries, operates offshore supply vessels and multi-purpose support vessels primarily in the U.S. Gulf of Mexico and Latin America. This stock closed up 4% at $43.50 in Friday's trading session.

Friday's Volume: 1.84 million
Three-Month Average Volume: 690,275
Volume % Change: 184%

From a technical perspective, HOS jumped sharply higher here with strong upside volume flows. This spike higher on Friday pushed shares of HOS into breakout territory, since the stock took out some near-term overhead resistance at $42.63. Shares of HOS are now starting to move within range of triggering another big breakout trade. That trade will hit if HOS manages to take out Friday's intraday high of $44.24 to some past overhead resistance at $44.36 with high volume.

Traders should now look for long-biased trades in HOS as long as it's trending above Friday's low of $41.99 or above $41 and then once it sustains a move or close above those breakout levels with volume that hits near or above 690,275 shares. If that breakout starts soon, then HOS will set up to re-test or possibly take out its next major overhead resistance levels at $47.31 to its 200-day moving average of $48.59.

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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