4 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.

Media General (MEG) owns and operates broadcast television stations and related Web sites and mobile news applications in the U.S. This stock closed up 2.4% to $17.80 in Monday's trading session.

Monday's Volume: 967,000
Three-Month Average Volume: 419,478
Volume % Change: 138%

From a technical perspective, MEG jumped notably higher here right above some near-term support at $17.06 with above-average volume. This spike higher on Monday is starting to push shares of MEG within range of triggering a major breakout trade. That trade will hit if MEG manages to take out some near-term overhead resistance levels at $18.50 to $18.82 and then once it clears more past resistance at $18.92 to $19.69 with strong upside volume.

Traders should now look for long-biased trades in MEG as long as it's trending above some near-term support at $17.06 or above more support at $16 and then once it sustains a move or close above those breakout levels with volume that hits near or above 419,478 shares. If that breakout triggers soon, then MEG will set up to re-test or possibly take out its next major overhead resistance levels at $23 to its 52-week high of $23.97.

NewStar Financial (NEWS) operates as a specialized commercial finance company in the U.S. This stock closed up 4.2% to $13.82 in Monday's trading session.

Monday's Volume: 301,000
Three-Month Average Volume: 70,486
Volume % Change: 290%

From a technical perspective, NEWS jumped higher here right above some near-term support at $12.86 and above its 50-day moving average of $12.39 with strong upside volume flows. This spike higher on Monday is starting to push shares of NEWS within range of triggering a near-term breakout trade. That trade will hit once NEWS manages to take out Monday's intraday high of $13.88 to more resistance at $13.90 with high volume.

Traders should now look for long-biased trades in NEWS as long as it's trending above support at $12.86 or above its 50-day at $12.39 and then once it sustains a move or close above those breakout levels with volume that hits near or above 70,486 shares. If that breakout materializes soon, then NEWS will set up to re-test or possibly take out its next major overhead resistance levels at $15 to $16, or even $17.

Dynagas LNG Partners (DLNG), through its subsidiaries, operates in the seaborne transportation industry worldwide. This stock closed up 3.3% to $24.04 in Monday's trading session.

Monday's Volume: 419,000
Three-Month Average Volume: 80,973
Volume % Change: 534%

From a technical perspective, DLNG bounced notably higher here right above some near-term support at $22.50 and above its 50-day moving average of $22.40 with monster upside volume. This bounce higher on Monday is starting to push shares of DLNG within range of triggering a major breakout trade. That trade will hit if DLNG manages to take out Monday's intraday high of $24.24 to more resistance at $24.99 and then once it clears its all-time high at $25 with high volume.

Traders should now look for long-biased trades in DLNG as long as it's trending above support at $22.50 or above its 50-day at $22.40 and then once it sustains a move or close above those breakout levels with volume that hits near or above 80,973 shares. If that breakout gets underway soon, then DLNG will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that move are $30 to $35.

First Cash Financial Services (FCFS) operates retail-based pawn and consumer finance stores in the U.S. and Mexico. This stock closed up 1.2% at $54.25 in Monday's trading session.

Monday's Volume: 441,000
Three-Month Average Volume: 173,532
Volume % Change: 157%

From a technical perspective, FCFS bounced modestly higher here right above some near-term support at $52 with above-average volume. This stock has been uptrending strong for the last two months, with shares moving higher from its low of $46.01 to its recent high of $55.55. During that uptrend, shares of FCFS have been consistently making higher lows and higher highs, which is bullish technical price action. This spike higher on Monday is starting to push shares of FCFS within range of triggering a big breakout trade. That trade will hit if FCFS manages to take out some key overhead resistance levels at $55.55 to $56.34 with high volume.

Traders should now look for long-biased trades in FCFS as long as it's trending above some near-term support at $52 or above its 50-day at $50.80 and then once it sustains a move or close above those breakout levels with volume that this near or above 173,532 shares. If that breakout begins soon, then FCFS will set up to re-test or possibly take out its next major overhead resistance levels at $60 to its 52-week high of $64.06.

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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