5 Stocks Breaking Out With 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.

Garmin

Garmin (GRMN) , together with its subsidiaries, designs, develops, manufactures and markets hand-held, portable and fixed-mount GPS-enabled products and other navigation, communication and information products for the automotive, outdoor, fitness, marine and general aviation markets worldwide. This stock closed up 3.9% to $53.77 in Wednesday's trading session.

Wednesday's Volume: 4.91 million
Three-Month Average Volume: 1.47 million
Volume % Change: 213%

From a technical perspective, GRMN jumped higher here right above some near-term support at $50.29 and back above its 200-day moving average of $52.98 with strong upside volume flows. This stock has been downtrending for the last few weeks, with shares moving lower from its high of $58.13 to that $50.29 low. Shares of GRMN have now started to rebound off that $50.29 low and it's quickly moving within range of triggering a near-term breakout trade. That trade will hit if GRMN manages to take out some near-term overhead resistance levels at $54 to $55 with high volume.

Traders should now look for long-biased trades in GRMN as long as it's trending above Wednesday's intraday low of $51.90 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.47 million shares. If that breakout gets underway soon, then GRMN will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $56.33 to $58.13.

FXCM

FXCM (FXCM) , through its subsidiaries, provides online foreign exchange trading and related services to retail and institutional customers worldwide. This stock closed up 3.7% at $15.30 in Wednesday's trading session.

Wednesday's Volume: 1.33 million
Three-Month Average Volume: 391,858
Volume % Change: 231%

From a technical perspective, FXCM gapped up notably higher here back above its 200-day moving average of $15.06 with strong upside volume flows. This sharp spike to the upside on Wednesday is now starting to push shares of FXCM within range of triggering a big breakout trade. That trade will hit if FXCM manages to clear some key past overhead resistance levels at $15.47 to $15.83 with high volume.

Traders should now look for long-biased trades in FXCM as long as it's trending above Wednesday's intraday low of $15.02 and then once it sustains a move or close above those breakout levels with volume that hits near or above 391,858 shares. If that breakout develops soon, then FXCM will set up to re-test or possibly take out its next major overhead resistance levels at $16.55 to $17.75, or even $18.20.

VeriFone Systems

VeriFone Systems (PAY) designs, markets, and services electronic payment solutions at the point of sale (POS) worldwide. This stock closed up 6.8% to $37.40 in Wednesday's trading session.

Wednesday's Volume: 6.03 million
Three-Month Average Volume: 1.24 million
Volume % Change: 340%

From a technical perspective, PAY ripped sharply higher here right off its 50-day moving average of $34.93 with strong upside volume flows. This large spike to the upside on Wednesday also pushed shares of PAY into breakout territory, since the stock took out some near-term overhead resistance at $36.86. That move is now quickly pushing shares of PAY within range of triggering another big breakout trade. That trade will hit if PAY manages to clear Wednesday's intraday high of $37.55 to its 52-week high of $38.26 and then above some key past resistance at $39 with high volume.

Traders should now look for long-biased trades in PAY as long as it's trending above $36 or above its 50-day at $34.93 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.24 million shares. If that breakout hits soon, then PAY will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $45 to $50.

Pharmacyclics

Pharmacyclics (PCYC) , a biopharmaceutical company, designs, develops and commercializes small-molecule drugs for the treatment of cancer and immune mediated diseases in the U.S. and internationally. This stock closed up 7.7% to $127.81 in Wednesday's trading session.

Wednesday's Volume: 3.03 million
Three-Month Average Volume: 976,348
Volume % Change: 207%

From a technical perspective, PCYC ripped sharply higher here right above some near-term support at $115.67 with strong upside volume flows. This big spike to the upside on Wednesday also briefly pushed shares of PCYC into breakout territory, since the stock flirted with some near-term overhead resistance levels at $126.22 to $128.31. Shares of PCYC tagged an intraday high of $129.16, before closing just below that level at $127.81. Market players should now look for a continuation move to the upside in the short-term if PCYC manages to clear Wednesday's intraday high of $129.16 with high volume.

Traders should now look for long-biased trades in PCYC as long as it's trending above $125 or above $120 and then once it sustains a move or close above $129.16 with volume that hits near or above 976,348 shares. If that move kicks off soon, then PCYC will set up to re-test or possibly take out its next major overhead resistance levels at $140 to $145.

LogMeIn

LogMeIn (LOGM) provides cloud-based collaboration, IT management and customer service offerings to address the multi-device security, management and accessibility requirements of the new mobile workplace in the U.S., the United Kingdom and internationally. This stock closed up 5.4% at $44.92 in Wednesday's trading session.

Wednesday's Volume: 511,000
Three-Month Average Volume: 311,752
Volume % Change: 50%

From a technical perspective, LOGM ripped sharply higher here right above its 50-day moving average of $42.21 with above-average volume. This spike to the upside on Wednesday also pushed shares of LOGM into breakout territory, since the stock cleared some near-term overhead resistance at $43.92. Shares of LOGM are now quickly moving within range of triggering another near-term breakout trade. That trade will hit if LOGM manages to take out some key near-term overhead resistance at $45 with high volume.

Traders should now look for long-biased trades in LOGM as long as it's trending above its 50-day at $42.21 or above more near-term support at $41 and then once it sustains a move or close above $45 with volume that's near or above 311,752 shares. If that breakout develops soon, then LOGM will set up to re-test or possibly take out its next major overhead resistance levels at $47.50 to its 52-week high at $47.69. Any high-volume move above $47.69 would then push shares of LOGM into new 52-week-high territory, which is bullish technical price action.

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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