3 Stocks Rising 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.

Anacor Pharmaceuticals (ANAC), a biopharmaceutical company, focuses on discovering, developing and commercializing novel small-molecule therapeutics derived from its boron chemistry platform. This stock closed up 6.6% to $16.90 in Monday's trading session.

Monday's Volume: 2.22 million
Three-Month Average Volume: 425,667
Volume % Change: 412%

From a technical perspective, ANAC gapped sharply higher here back above both its 50-day moving average of $15.97 and its 200-day moving average of $16.50 with monster upside volume. This stock recently formed a double bottom chart pattern at $14.95 to $15.11. Since tagging that bottom, shares of ANAC have started to rip higher and move within range of triggering a big breakout trade. That trade will hit if ANAC manages to take out Monday's intraday high of $17.03 to $17.62 and then once it clears more near-term overhead resistance at $18.73 with high volume.

Traders should now look for long-biased trades in ANAC as long as it's trending above Monday's intraday low of $16.15 and then once it sustains a move or close above those breakout levels with volume that hits near or above 425,667 shares. If that breakout kicks off soon, then ANAC will set up to re-test or possibly take out its next major overhead resistance levels at $21.27 to $23.07.

Imax (IMAX), together with its subsidiaries, operates as an entertainment technology company specializing in motion picture technologies and presentations worldwide. This stock closed up 2.8% at $25.31 in Monday's trading session.

Monday's Volume: 916,000
Three-Month Average Volume: 494,841
Volume % Change: 84%

From a technical perspective, Imax gapped notably higher here with above-above volume. This stock has been downtrending for the last few weeks, with shares moving lower from its high of $26.68 to its recent 52-week low of $24.01. During that move, shares of IMAX have been consistently making lower highs and lower lows, which is bearish technical price action. That move pushed shares of IMAX into oversold territory, since its relative strength index reading recently dipped below 30. That said, shares of IMAX are now starting to bounce off its 52-week low and off oversold levels with strong upside volume.

Traders should now look for long-biased trades in IMAX as long as it's trending above Monday's intraday low of $24.85 or above its 52-week low of $24.01 and then once it sustains a move or close above Monday's intraday high of $25.44 to around $26 with volume that this near or above 494,841 shares. If that move starts soon, then IMAX will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $26.48 to its 200-day moving average of $27.51, or even $28 to around $29.

Cameco (CCJ) produces and sells uranium worldwide. This stock closed up 4.2% at $21.28 in Monday's trading session.

Monday's Volume: 4.89 million
Three-Month Average Volume: 1.70 million
Volume % Change: 160%

From a technical perspective, CCJ trended sharply higher here back above its 200-day moving average of $20.60 with strong upside volume. This stock recently broke out above some near-term overhead resistance levels at $20.10 to $20.18 with strong upside volume flows. Market players should now look for a continuation move to the upside in the short-term if CCJ manages to clear Monday's intraday high of $21.29 with high volume.

Traders should now look for long-biased trades in CCJ as long as it's trending above Monday's low of $20.40 or above its 50-day moving average of $19.63 and then once it sustains a move or close above $21.29 with volume that hits near or above 1.70 million shares. If we get that move soon, then CCJ will set up to re-test or possibly take out its next major overhead resistance levels at $23.48 to $24.85, or even $25.59.

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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