5 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.

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.

NewLink Genetics

NewLink Genetics (NLNK) , a biopharmaceutical company, focuses on discovering, developing and commercializing immunotherapeutic products to enhance treatment options for patients with cancer. This stock closed up 8.6% to $28.42 in Friday's trading session.

Friday's Volume: 1.31 million
Three-Month Average Volume: 593,968
Volume % Change: 302%

From a technical perspective, NLNK ripped sharply higher here right above its 200-day moving average of $25.67 with strong upside volume flows. This stock has been uptrending strong over the last few weeks, with shares moving higher from its low of $20.01 to its intraday high of $28.67. During that move, shares of NLNK have been consistently making higher lows and higher highs, which is bullish technical price action. Market players should now look for continuation move to the upside in the short-term if NLNK manages to take out Friday's intraday high of $28.67 with high volume.

Traders should now look for long-biased trades in NLNK as long as it's trending above its 200-day moving average of $25.67 and then once it sustains a move or close above $28.67 with volume that hits near or above 593,968 shares. If that move gets started soon, then NLNK will set up to re-test or possibly take out its next major overhead resistance levels at $33 to $35.

Paylocity

Paylocity (PCTY) provides cloud-based payroll and human capital management software solutions for medium-sized organizations in the U.S. This stock closed up 9.7% to $24.34 in Friday's trading session.

Friday's Volume: 706,000
Three-Month Average Volume: 179,764
Volume % Change: 351%

From a technical perspective, PCTY exploded higher here and broke out above some key near-term overhead resistance levels at $22.95 to $23.84 with high volume. This strong move to the upside on Friday is quickly pushing shares of PCTY within range of triggering another big breakout trade. That trade will hit if PCTY manages to take out some past resistance levels at $25 to just above $26 with high volume.

Traders should now look for long-biased trades in PCTY as long as it's trending above $23 or above $22 and then once it sustains a move or close above those breakout levels with volume that hits near or above 179,764 shares. If that breakout hits soon, then PCTY will set up to re-test or possibly take out its all-time high at $31.

Salix Pharmaceuticals

Salix Pharmaceuticals (SLXP) , acquires, develops, and commercializes prescription drugs and medical devices to treat various gastrointestinal diseases in the U.S. This stock closed up 4.7% at $139.58 in Friday's trading session.

Friday's Volume: 1.35 million
Three-Month Average Volume: 1.14 million
Volume % Change: 50%

From a technical perspective, SLXP jumped notably higher here with decent upside volume flows. This move on Friday briefly pushed shares of SLXP into breakout territory, since the stock flirted with some near-term overhead resistance at $139.78. Shares of SLXP tagged an intraday high of $140.47, before closing just below that level at $139.58. Shares of SLXP are now quickly moving within range of triggering another big breakout trade. That trade will hit if SLXP manages to take out Friday's intraday high of $140.47 to its 52-week high at $141.80 with high volume.

Traders should now look for long-biased trades in SLXP as long as it's trending above Friday's intraday low of $133.43 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.14 million shares. If that breakout triggers soon, then SLXP will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $145 to $150.

Sina

Sina (SINA) , through its subsidiaries, operates as an online media company in the People's Republic of China. This stock closed up 2.7% to $49.13 in Friday's trading session.

Friday's Volume: 6.84 million
Three-Month Average Volume: 2.43 million
Volume % Change: 237%

From a technical perspective, SINA gapped notably higher here right off its 50-day moving average of $47.58 with strong upside volume flows. This spike to the upside on Friday briefly pushed shares of SINA into breakout territory, since the stock flirted with some near-term overhead resistance at $51.14. Shares of SINA tagged an intraday high of $51.50, before closing below that level at $49.13. Market players should now look for a continuation move to the upside in the short-term if SINA manages to take out Friday's intraday high of $51.50 and then once it clears more resistance at $52.77 with high volume.

Traders should now look for long-biased trades in SINA as long as it's trending above Friday's intraday low of $48.74 or above its 50-day at $47.58 and then once it sustains a move or close above $51.50 to $52.77 with volume that hits near or above 2.43 million shares. If that move materializes soon, then SINA will set up to re-test or possibly take out its next major overhead resistance levels at $57 to $58.20.

Identiv

Identiv (INVE) operates as a security technology company that establishes trust in the connected world, including premises, information, and everyday items. This stock closed up 3.9% at $11.98 in Friday's trading session.

Friday's Volume: 130,000
Three-Month Average Volume: 57,470
Volume % Change: 175%

From a technical perspective, INVE jumped notably higher here with above-average volume. This move on Friday briefly pushed shares of INVE into breakout territory, since the stock flirted with some near-term overhead resistance at $12.16. Shares of INVE tagged an intraday high of $12.18, before closing just below that level at $11.98. Shares of INVE are now starting to trend within range of triggering a big breakout trade. That trade will hit if INVE manages to take out some key overhead resistance levels at $12.50 to its 52-week high at $13 with high volume.

Traders should now look for long-biased trades in INVE as long as it's trending above Friday's intraday low of $11.52 or above $11 and then once it sustains a move or close above those breakout levels with volume that this near or above 57,470 shares. If that breakout triggers soon, then INVE will set up to enter new 52-week-high territory above $13, which is bullish technical price action. Some possible upside targets off that breakout are $16 to $17.

-- 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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