5 Stocks Jumping 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.

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

Chicago Bridge & Iron

Chicago Bridge & Iron (CBI) provides conceptual design, technology, engineering, procurement, fabrication, modularization, construction, commissioning, maintenance, program management, and environmental services to customers in the energy infrastructure worldwide This stock closed up 2.3% to $59.70 in Monday's trading session.

Monday's Volume: 3.91 million
Three-Month Average Volume: 2.25 million
Volume % Change: 107%

From a technical perspective, CBI trended modestly higher here right above some near-term support at $57.54 with above-average volume. This move to the upside on Monday is starting to push shares of CBI within range of triggering a near-term breakout trade. That trade will hit if CBI manages to take out some near-term overhead resistance levels at $60.36 to $61.10 with high volume.

Traders should now look for long-biased trades in CBI as long as it's trending above Monday's intraday low of $58.74 or above more near-term support at $57.54 and then once it sustains a move or close above those breakout levels with volume that hits near or above 2.25 million shares. If that breakout this soon, then CBI will set up to re-test or possibly take out its next major overhead resistance levels at $65 to its 50-day moving average of $66.82, or even $70.

Compressco Partners L.P.

Compressco Partners L.P. (GSJK) provides compression-based production enhancement services for natural gas and oil exploration and production companies. This stock closed up 3.8% to $25.49 in Monday's trading session.

Monday's Volume: 736,000
Three-Month Average Volume: 195,348
Volume % Change: 407%

From a technical perspective, GSJK bounced notably higher here right off its 50-day moving average of $24.80 with strong upside volume flows. This stock has been uptrending strong for the last few weeks, with shares moving higher from $21.25 to its intraday high of $25.60. During that uptrend, shares of GSJK have been consistently making higher lows and higher highs, which is bullish technical price action. Market players should now look for a continuation move to the upside in the short-term if GSJK manages to take out Monday's intraday high of $25.60 with high volume.

Traders should now look for long-biased trades in GSJK as long as it's trending above its 50-day at $24.80 or above more near-term support at $24 and then once it sustains a move or close above $25.60 with volume that hits near or above 195,348 shares. If that move starts soon, then GSJK will set up to re-test or possibly take out its next major overhead resistance levels at $27 to $27.50, or even $29 to $30.

Tekmira Pharmaceuticals

Tekmira Pharmaceuticals (TKMR) is a biopharmaceutical company focused on advancing ribonucleic acid (RNA) interference (RNAi) therapeutics and providing its lipid nanoparticle (LNP) delivery technology to pharmaceutical partners. This stock closed up 7.5% at $19.45 in Monday's trading session.

Monday's Volume: 12.05 million
Three-Month Average Volume: 1.98 million
Volume % Change: 397%

From a technical perspective, TKMR gapped up sharply higher here with monster upside volume flows. This sharp move to the upside on Monday is quickly pushing shares of TKMR within range of triggering a near-term breakout trade. That trade will hit if TKMR manages to take out Monday's intraday high of $20.68 to some more near-term overhead resistance at $22 with high volume.

Traders should now look for long-biased trades in TKMR as long as it's trending above Monday's intraday low of $18.81 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.98 million shares. If that breakout hits soon, then TKMR will set up to re-test or possibly take out its next major overhead resistance level at $26.05.

Arrowhead Research

Arrowhead Research (ARWR) , a biopharmaceutical company, develops targeted RNAi therapeutics in the U.S. This stock closed up 4.5% to $14.50 in Monday's trading session.

Monday's Volume: 3.89 million
Three-Month Average Volume: 2.48 million
Volume % Change: 95%

From a technical perspective, ARWR ripped higher here right above its 200-day moving average of $13.32 with above-average volume. This strong spike to the upside on Monday is starting to push shares of ARWR within range of triggering a big breakout trade. That trade will hit if ARWR manages to take out Monday's intraday high of $15 to some more key overhead resistance at $15.73 with high volume.

Traders should now look for long-biased trades in ARWR as long as it's trending above its 200-day at $13.32 or above its 50-day at $12.92 and then once it sustains a move or close above those breakout levels with volume that hits near or above 2.48 million shares. If that breakout materializes soon, then ARWR will set up to re-test or possibly take out its next major overhead resistance levels at $18 to $20.

INSYS Therapeutics

INSYS Therapeutics (INSY) , a commercial-stage specialty pharmaceutical company, develops and commercializes supportive care products. This stock closed up 5.8% at $36.77 in Monday's trading session.

Monday's Volume: 650,000
Three-Month Average Volume: 566,448
Volume % Change: 50%

From a technical perspective, INSY ripped sharply higher here right above its 200-day moving average of $33.04 with above-average volume. This stock recently broke out above some key near-term overhead resistance levels at $30.49 to $33.65. Since that breakout, shares of INSY have continued to trend higher with strong upside volume flows. Market players should now look for a continuation move to the upside in the short-term if INSY manages to take out Monday's intraday high of $37.73 with high volume.

Traders should now look for long-biased trades in INSY as long as it's trending above Monday's intraday low of $35.07 or above its 200-day at $33.04 and then once it sustains a move or close above $37.73 with volume that this near or above 566,448 shares. If that move gets underway soon, then INSY will set up to re-test or possibly take out its next major overhead resistance levels at $40 to $42,37, or even $43 to $44.50.

To see more stocks rising on unusual volume, check out the Stocks Rising On Unusual Volume portfolio on Stockpickr.

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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.

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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