3 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.

Boyd Gaming

Boyd Gaming (BYD) , together with its subsidiaries, operates as a multi-jurisdictional gaming company in the U.S. This stock closed up 5.6% to $11.77 in Monday's trading session.

Monday's Volume: 3.94 million
Three-Month Average Volume: 1.25 million
Volume % Change: 179%

From a technical perspective, BYD ripped sharply higher here right above its 50-day moving average of $10.90 and back above its 200-day moving average of $11.33 with high volume. This jump to the upside on Monday also pushed shares of BOYD above some key near-term overhead resistance at $11.33, which also happens to coincide with its 200-day moving average. Shares of BYD are now starting to trend within range of triggering another big breakout trade. That trade will hit if BYD manages to clear Monday's intraday high of $11.93 to some more key overhead resistance levels at $12.55 to $12.73 with high volume.

Traders should now look for long-biased trades in BYD as long as it's trending above its 200-day at $11.33 or its 50-day at $10.90 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.25 million shares. If that breakout triggers soon, then BYD will set up to re-test or possibly take out its next major overhead resistance levels at $14 to its 52-week high at $14.75.

Continental Building Products

Continental Building Products (CBPX) , manufactures and sells a range of gypsum wallboard and complementary finishing products for the new residential, repair and remodel, and commercial construction markets. This stock closed up 6.1% to $17.15 in Monday's trading session.

Monday's Volume: 349,000
Three-Month Average Volume: 138,814
Volume % Change: 173%

From a technical perspective, CBPX ripped sharply higher here and broke out above some past overhead resistance at $17.03 with above-average volume. This stock has been uptrending strong for the last month, with shares moving higher from $13.18 to its intraday high of $17.15. During that uptrend, shares of CBPX 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 CBPX manages to take out Monday's intraday high of $17.47 with high volume.

Traders should now look for long-biased trades in CBPX as long as it's trending above some near-term support at $16 and then once it sustains a move or close above $17.47 with volume that hits near or above 138,814 shares. If that move gets started soon, then CBPX will set up to re-test or possibly take out its next major overhead resistance levels at $18.84 to $20, or even its all-time high of $20.51.

Golar LNG

Golar LNG (GLNG) , a midstream liquefied natural gas (LNG) company, is engaged in the transportation, regasification and liquefaction, and trading of LNG. This stock closed up 3.2% at $61.35 in Monday's trading session.

Monday's Volume: 3.97 million
Three-Month Average Volume: 1.27 million
Volume % Change: 254%

From a technical perspective, GLNG ripped sharply higher here right above some near-term support at $57.11 and back above its 50-day moving average of $61.08 with strong upside volume flows. This stock recently formed a major bottoming chart pattern, since shares of GLNG hit a double bottom at $57.12 to $57.11 over the last two months. This stock is now starting to rip higher off those support levels and it's quickly moving within range of triggering a near-term breakout trade. That trade will hit if GLNG manages to take out Monday's intraday high of $61.62 to some more near-term resistance at $62.72 with high volume.

Traders should now look for long-biased trades in GLNG as long as it's trending above Monday's intraday low of $58.66 or above those double bottom support levels and then once it sustains a move or close above those breakout levels with volume that this near or above 1.27 million shares. If that breakout develops soon, then GLNG will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $67.76.

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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