4 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.

Intercontinental Exchange (ICE) operates a network of regulated exchanges and clearing houses for financial and commodity markets in the U.S., the U.K., Continental Europe and Canada. This stock closed up 1.6% to $194.36 in Friday's trading session.

Friday's Volume: 1.70 million
Three-Month Average Volume: 924,794
Volume % Change: 223%

From a technical perspective, ICE jumped notably higher here right off its 50-day moving average of $190.71 with above-average volume. This stock has been uptrending a bit for the last few weeks, with shares moving higher from its low of $182.40 to its intraday high of $196.74. During that move, shares of ICE have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of ICE back above its 50-day moving average, which is bullish technical price action. Market players should now look for a continuation move to the upside in the near-term if ICE manages to take out Friday's intraday high of $196.74 with strong volume.

Traders should now look for long-biased trades in ICE as long as it's trending above its intraday low of $191.10 or above its 50-day at $190.71 and then once it sustains a move or close above Friday’s intraday high of $196.74 with volume that hits near or above 924,794 shares. If that move gets underway soon, then ICE will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $201.79 to $203. Any high-volume move above $203 will then give ICE a chance to tag $206 to $210.

Criteo (CRTO), together with its subsidiaries, operates as a technology company that provides Internet display advertising services in France and internationally. This stock closed up 4.6% at $32.11 in Friday's trading session.

Friday's Volume: 978,000
Three-Month Average Volume: 508,971
Volume % Change: 145%

From a technical perspective, CRTO bounced sharply higher here right off some near-term support at $30.27 with above-average volume. This sharp bounce higher on Friday is starting to push shares of CRTO within range of triggering a near-term breakout trade . That trade will hit if CRTO manages to take out its 50-day moving average of $32.78 to some more near-term overhead resistance levels at $33.67 to around $35 with high volume.

Traders should now look for long-biased trades in CRTO as long as it's trending above some near-term support at $30.27 and then once it sustains a move or close above those breakout levels with volume that this near or above 508,971 shares. If that breakout hits soon, then CRTO will set up to re-test or possibly take out its next major overhead resistance levels at $37.50 to $39.30, or even $42.50.

CECO Environmental (CECE), an environmental technology company, provides critical solutions in the product recovery, air pollution control, fluid handling and filtration segments. This stock closed up 4.9% at $15.35 in Friday's trading session.

Friday's Volume: 202,000
Three-Month Average Volume: 91,200
Volume % Change: 100%

From a technical perspective, CECE ripped sharply higher here right off some near-term support at $14.56 and back above its 50-day moving average of $14.73 with strong upside volume flows. This sharp spike higher on Friday is quickly pushing shares of CECE within range of triggering a near-term breakout trade. That trade will hit if CECE manages to take out its 200-day moving average of $15.83 to some more key overhead resistance levels at $16 to $16.12 with high volume.

Traders should now look for long-biased trades in CECE as long as it's trending above some key near-term support at $14.56 or above more support at $14 and then once it sustains a move or close above those breakout levels with volume that's near or above 91,200 shares. If that breakout kicks off soon, then CECE will set up to re-test or possibly take out its next major overhead resistance levels $17.23 to $18, or even $18.67 to $18.77.

Taser International (TASR) is engaged in the development, manufacture, and sale of conducted electrical weapons for use in law enforcement, federal, military, corrections, private security and personal defense markets worldwide. This stock closed up 8.1% at $11.36 in Friday's trading session.

Friday's Volume: 1.99 million
Three-Month Average Volume: 1.07 million
Volume % Change: 95%

From a technical perspective, TASR ripped sharply higher here right off some near-term support at $10.46 with above-average volume. This stock has been downtrending badly for the last month and change, with shares dropping from its high of $14.65 to its recent low of $10.46. During that downtrend, shares of TASR have been consistently making lower highs and lower lows, which is bearish technical price action. That move has also pushed shares of TASR into oversold territory, since its current relative strength index reading is 35.94. Oversold can always get more oversold, but shares of TASR are starting to rebound sharply higher with strong volume.

Traders should now look for long-biased trades in TASR as long as it's trending above its recent low of $10.46 and then once it sustains a move or close above Friday's intraday high of $11.40 to some more near-term overhead resistance at $11.48 with volume that's near or above 1.07 million shares. If that move begins soon, then TASR will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $13.04 to $13.74, or even $14 to $14.65.

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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