4 Stocks Breaking Out 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.

Tornier

Tornier (TRNX) a medical device company, designs, manufactures, markets, and sells orthopedic products. This stock closed up 4% at $24.77 in Friday's trading session.

Friday's Volume: 597,000
Three-Month Average Volume: 232,434
Volume % Change: 251%

From a technical perspective, TRNX spiked sharply higher here right above some near-term support levels at $23 to $22.50 with above-average volume. This trend higher on Friday also pushed shares of TRNX into breakout and new 52-week high territory, since the stock took out some past overhead resistance at $24.35. Market players should now look for a continuation move to the upside in the short-term if TRNX manages to clear Friday's intraday high of $24.98 with high volume.

Traders should now look for long-biased trades in TRNX as long as it's trending above Friday's intraday low of $23.87 or above $23 and then once it sustains a move or close above $24.98 with volume that hits near or above 232,434 shares. If that move starts soon, then TRNX will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $28 to $30.

Comerica

Comerica (CMA) , through its subsidiaries, provides financial products and services. This stock closed up 1.6% to $51.24 in Friday's trading session.

Friday's Volume: 3.01 million
Three-Month Average Volume: 1.26 million
Volume % Change: 144%

From a technical perspective, CMA jumped modestly higher here right above its 50-day moving average of $49.76 with above-average volume. This stock has been uptrending a bit for the last month, with shares moving higher from its low of $48.14 to its intraday high of $51.50. During that move, shares of CMA have been making mostly higher lows and higher highs, which is bullish technical price action. This spike higher on Friday is now starting to push shares of CMA within range of triggering a major breakout trade. That trade will hit if CMA manages to take out some key overhead resistance levels at $52.03 to $52.19 and then above its 52-week high at $53.50 with high volume.

Traders should now look for long-biased trades in CMA as long as it's trending above Friday's intraday low of $50.55 or above its 50-day at $49.76 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.26 million shares. If that breakout triggers soon, then CMA will set up to enter new 52-week-high territory above $53.50, which is bullish technical price action. Some possible upside targets off that breakout are $58 to $60.

Qualys

Qualys (QLYS) provides cloud security and compliance solutions to enterprises, government entities, and small and medium-sized businesses in the U.S. and internationally. This stock closed up 0.77% at $24.91 in Friday's trading session.

Friday's Volume: 300,000
Three-Month Average Volume: 172,938
Volume % Change: 115%

From a technical perspective, QLYS trended modestly higher here right above some near-term support at $24 and back above its 200-day moving average of $24.78 with above-average volume. This trend higher on Friday is now starting to push shares of QLYS within range of triggering a near-term breakout trade. That trade will hit if QLYS manages to clear its 50-day moving average of $25.15 to some more near-term overhead resistance at $25.86 with high volume.

Traders should now look for long-biased trades in QLYS as long as it's trending above some key near-term support levels at $24 or at $23.43 and then once it sustains a move or close above those breakout levels with volume that this near or above 172,938 shares. If that breakout develops soon, then QLYS will set up to re-test or possibly take out its next major overhead resistance levels at $28.16 to its 52-week high at $29.94.



The Advisory Board

The Advisory Board (ABCO) provides best practices research and analysis, business intelligence and performance technology software, and consulting and management services to the health care and education industries in the U.S. and internationally. This stock closed up 3% at $50.04 in Friday's trading session.

Friday's Volume: 682,000
Three-Month Average Volume: 249,681
Volume % Change: 184%

From a technical perspective, ABCO gapped up sharply higher here back above its 50-day moving average of $49.88 with strong upside volume flows. This stock recently formed a double bottom chart pattern at $46.37 to $46.02. Following that bottom, shares of ABCO have now started to uptrend back above its 50-day and it's quickly moving within range of triggering a big breakout trade. That trade will hit if ABCO manages to take out Friday's intraday high of $51.11 to some more near-term overhead resistance at $52.40 with high volume.

Traders should now look for long-biased trades in ABCO as long as it's trending above Friday's intraday low of $49.43 or above $48 and then once it sustains a move or close above those breakout levels with volume that hits near or above 249,681 shares. If that breakout materializes soon, then ABCO will set up to re-test or possibly take out its next major overhead resistance levels at $55.72 to its 200-day moving average of $56.91.

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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