4 Stocks Rising 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.


Diamond Foods

Diamond Foods (DMND) a packaged food company, processes, markets, and distributes snack products and nuts. This stock closed up 7.3% to $28.57 in Friday's trading session.

Friday's Volume: 1.50 million
Three-Month Average Volume: 307,211
Volume % Change: 478%

From a technical perspective, DMND gapped up sharply higher here with heavy upside volume flows. This large move to the upside on Friday briefly pushed shares of DMND into breakout territory and back above its 200-day moving average, since the stock flirted with some key levels at $28.60 to $28.84. Shares of DMND tagged an intraday high of $29.76, before it closed off that level at $28.57. Traders should now look for a continuation move to the upside in the short-term if DMND manages to take out Friday's intraday high of $29.76 with high volume.

Traders should now look for long-biased trades in DMND as long as it's trending above Friday's intraday low of $28.10 and then once it sustains a move or close above $29.76 with volume that hits near or above 307,211 shares. If that move gets started soon, then DMND will set up to re-test or possibly take out its next major overhead resistance levels at $32 to $33.55, or even $35.

Comtech Telecommunications

Comtech Telecommunications (CMTL) designs, develops, produces and markets products, systems and services for communications solutions in the U.S. and internationally. This stock closed up 2.2% at $38.69 in Friday's trading session.

Friday's Volume: 200,000
Three-Month Average Volume: 108,322
Volume % Change: 93%

From a technical perspective, CMTL trended notably higher here right above some near-term support at $37.41 with above-average volume. This trend to the upside on Friday is quickly pushing shares of CMTL within range of triggering a major breakout trade. That trade will hit if CMTL manages to take out some near-term overhead resistance levels at $39 to $39.42 and then once it clears its 52-week high at $40.48 with high volume.

Traders should now look for long-biased trades in CMTL as long as it's trending above some near-term support at $37.41 or above its 50-day at $36.58 and then once it sustains a move or close above those breakout levels with volume that's near or above 108,322 shares. If that breakout materializes soon, then CMTL will set up to enter new 52-week-high territory above $40.48, which is bullish technical price action. Some possible upside targets off that breakout are $45 to $50.

Civeo

Civeo (CVEO) provides workforce accommodations in the Canadian oil sands and the Australian natural resource regions. This stock closed up 2% at $25.47 in Friday's trading session.

Friday's Volume: 1.81 million
Three-Month Average Volume: 1.09 million
Volume % Change: 65%

From a technical perspective, CVEO trended notably higher here right above some near-term support at $24.19 and back above its 50-day moving average of $25.16 with above-average volume. This jump to the upside on Friday is now quickly pushing shares of CVEO within range of triggering a near-term breakout trade. That trade will hit if CVEO manages to take out some key near-term overhead resistance levels at $26.12 to $26.14 and then above $26.31 with high volume.

Traders should now look for long-biased trades in CVEO as long as it's trending above some key near-term support levels at $24.19 or at $23.74 and then once it sustains a move or close above those breakout levels with volume that's near or above 1.09 million shares. If that breakout gets underway soon, the CVEO will set up to re-test or possibly take out its next major overhead resistance levels at $28.04 to its all-time high at $28.25. Any high-volume move above $28.25 will then give CVEO a chance to tag $30.

HB Fuller

HB Fuller (FUL) formulates, manufactures, and markets adhesives, sealants, and other specialty chemical products worldwide. This stock closed up 2.6% at $38.67 in Friday's trading session.

Friday's Volume: 953,000
Three-Month Average Volume: 316,663
Volume % Change: 235%

From a technical perspective, FUL bounced higher here right above its new 52-week low of $36.92 with above-average volume. This stock recently gapped down sharply from just over $44 to that 52-week low of $36.92 with monster downside volume. That move has now pushed shares of FUL into oversold territory, since its current relative strength index reading is 22. Oversold can always get more oversold, but it's also a level from which a stock can experience a sharp bounce higher.

Traders should now look for long-biased trades in FUL as long as it's trending above its 52-week low of $36.92 and then once it sustains a move or close above its gap-down-day high right around $39 with volume that's near or above 316,663 shares. If that move materializes soon, then FUL will set up to re-fill some of its previous gap-down-day zone that started just above $44.

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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