3 Big-Volume Stocks in Breakout Territory

 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.

Kandi Technologies Group (KNDI), through its subsidiaries, designs, develops, manufactures and commercializes various vehicles. This stock closed up 5.6% at $19.12 in Wednesday's trading session.

Wednesday's Volume: 5.58 million
Three-Month Average Volume: 1.86 million
Volume % Change: 202%

From a technical perspective, KNDI ripped sharply higher here with heavy upside volume. This stock has been uptrending strong for the last month and change, with shares moving higher from its low of $10.85 to its recent high of $19.92. During that uptrend, shares of KNDI have been consistently making higher lows and higher highs, which is bullish technical price action. This spike higher on Wednesday is starting to push shares of KNDI within range of triggering a near-term breakout trade. That trade will hit if KNDI manages to take out Wednesday's intraday high of $19.44 to some more key overhead resistance at $19.92 with high volume.

Traders should now look for long-biased trades in KNDI as long as it's trending above Wednesday's intraday low of $17.64 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.86 million shares. If that breakout hits soon, then KNDI will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high at $22.40.

Cash America International (CSH) provides specialty financial services to individuals through retail services locations and e-commerce activities. This stock closed up 5.8% to $43.95 in Wednesday's trading session.

Wednesday's Volume: 1.05 million
Three-Month Average Volume: 360,721
Volume % Change: 161%

From a technical perspective, CSH gapped sharply higher here right above its 200-day moving average of $41.12 with strong upside volume flows. This sharp spike to the upside on Wednesday is quickly pushing shares of CSH within range of triggering a near-term breakout trade. That trade will hit if CSH manages to take out its 50-day moving average of $44.75 to some more key overhead resistance levels at $45.33 to $47 with high volume.

Traders should now look for long-biased trades in CSH as long as it's trending above Wednesday's intraday low of $42.31 and then once it sustains a move or close above those breakout levels with volume that hits near or above 360,721 shares. If we get that move soon, then CSH will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $48.30.

AMC Networks (AMCX) owns and operates various cable television's brands delivering content to audiences, and a platform to distributors and advertisers in the U.S. and internationally. This stock closed up 4.4% at $63.61 in Wednesday's trading session.

Wednesday's Volume: 2.77 million
Three-Month Average Volume: 1.04 million
Volume % Change: 164%

From a technical perspective, AMCX gapped up sharply higher here right off its 50-day moving average of $60.94 with above-average volume. This sharp move higher on Wednesday pushed shares of AMCX into breakout territory, since the stock took out some near-term overhead resistance levels at $63.11 to $63.37. This move also pushed shares of AMCX into its previous gap-down-day zone from May that started just above $66. Market players should now look for a continuation move to the upside in the short-term if AMCX manages to clear Wednesday's intraday high of $64.32 with high volume.

Traders should now look for long-biased trades in AMCX as long as it's trending above Wednesday's intraday low of $61.89 and then once it sustains a move or close above $64.32 with volume that this near or above 1.04 million shares. If that move gets started soon, then AMCX will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $66.51 to close to $70.

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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