5 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.

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.

With that in mind, let's take a look at several stocks rising on unusual volume recently.

Red Robin Gourmet Burgers

Red Robin Gourmet Burgers (RRGB) , together with its subsidiaries, develops, operates, and franchises casual-dining restaurants. This stock closed up 4.3% at $54.90 in Friday's trading session.

Friday's Volume: 978,000
Three-Month Average Volume: 220,525
Volume % Change: 366%

From a technical perspective, RRGB ripped to the upside here right above some near-term support at $50.50 with strong upside volume flows. This stock recently gapped down sharply from $65.79 to that low of $50.50 with heavy downside volume. Following that move, shares of RRGB have started to rebound and trade back into that gap-down-zones from just a few trading sessions ago. Market players should now look for a continuation move to the upside in the short-term if RRBG manages to clear Friday's intraday high of $54.98 with strong volume.

Traders should now look for long-biased trades in RRGB as long as it's trending above Friday's intraday low of $52.83 and then once it sustains a move or close above $54.98 with volume that hits near or above 220,525 shares. If that move gets started soon, then RRGB will set up to re-fill more of its previous gap-down-day zone which started at $65.79.

Taser International

Taser International (TASR) is engaged in the development, manufacture, and sale of conducted electrical weapons (CEWs) for use in law enforcement, federal, military, corrections, private security, and personal defense markets worldwide. This stock closed up 9.4% at $13.91 in Friday's trading session.

Friday's Volume: 3.36 million
Three-Month Average Volume: 1.05 million
Volume % Change: 222%

From a technical perspective, TASR gapped up sharply higher here and broke out above some key overhead resistance levels at $13.57 to $13.74 with heavy upside volume flows. This strong spike to the upside on Friday is quickly pushing shares of TASR within range of triggering another big breakout trade. That trade will hit if TASR manages to clear some more near-term overhead resistance levels at $14.25 to $14.65 with high volume.

Traders should now look for long-biased trades in TASR as long as it's trending above Friday's intraday low of $13.14 or above $12.70 and then once it sustains a move or close above those breakout levels with volume that's near or above 1.05 million shares. If that breakout materializes soon, then TASR will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $15.71 to $17, or even $18.

Ultra Petroleum

Ultra Petroleum (UPL) an independent oil and gas company, is engaged in the acquisition, exploration, development, production, and operation of oil and natural gas properties in the U.S. This stock closed up 5.9% at $24.49 in Friday's trading session.

Friday's Volume: 8.46 million
Three-Month Average Volume: 3.10 million
Volume % Change: 166%

From a technical perspective, UPL gapped up sharply higher here and broke out above some near-term overhead resistance at $23.73 with big upside volume flows. This solid move to the upside on Friday is quickly pushing shares of UPL within range of triggering another near-term breakout trade. That trade will hit if UPL manages to take out Friday's intraday high of $24.79 to some more near-term overhead resistance at $25.16 with high volume.

Traders should now look for long-biased trades in UPL as long as it's trending above Friday's intraday low of $23.66 or above $23 and then once it sustains a move or close above those breakout levels with volume that's near or above 3.10 million shares. If that breakout materializes soon, then UPL will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $26.41 to $28, or even $30.

Sierra Wireless

Sierra Wireless (SWIR) , together with its subsidiaries, provides cellular wireless solutions to the machine-to-machine (M2M) and connected device markets in North America, Europe, and the Asia Pacific. This stock closed up 2.7% at $23.52 in Friday's trading session.

Friday's Volume: 1.03 million
Three-Month Average Volume: 444,353
Volume % Change: 144%

From a technical perspective, SWIR jumped higher here right off some near-term support at $22 with strong upside volume flows. This spike to the upside on Friday is starting to push shares o SWIR within range of triggering a major breakout trade. That trade will hit if SWIR manages to take out some key overhead resistance levels at $24.21 to $24.84 and then above its 52-week high at $26.65 with high volume.

Traders should now look for long-biased trades in SWIR as long as it's trending above some near-term support at $22 or above $21.50 and then once it sustains a move or close above those breakout levels with volume that's near or above 444,353 shares. If that breakout begins soon, then SWIR will set up to enter new 52-week-high territory above $26.65, which is bullish technical price action. Some possible upside targets off that breakout are $30 to $35.

SeaWorld Entertainment

SeaWorld Entertainment (SEAS) operates as a theme park and entertainment company in the U.S. This stock closed up 3.6% at $18.66 in Friday's trading session.

Friday's Volume: 13.70 million
Three-Month Average Volume: 2.12 million
Volume % Change: 703%

From a technical perspective, SEAS trended notably higher here right above some near-term support at $17.83 with heavy upside volume flows. This stock recently gapped down sharply from $28.44 to $17.83 with monster downside volume. Shares of SEAS are now starting to rebound off that $17.83 low and it's quickly moving within range of triggering a near-term breakout trade. That trade will hit if SEAS manages to take out Friday's intraday high of $18.72 to just above $19 with high volume.

Traders should now look for long-biased trades in SEAS as long as it's trending above Friday's intraday low of $18.03 or above that recent low of $17.83 and then once it sustains a move or close above those breakout levels with volume that's near or above 2.12 million shares. If that breakout gets underway soon, then SEAS will set up to re-test or possibly take out its next major overhead resistance level at its gap-down-day high of $21.35. Any high-volume move above $21.35 will then give SEAS a chance to re-fill some of that previous gap-down-day zone that started at $28.44.

-- 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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