3 Unusual-Volume Tech Stocks to Trade for Breakouts

 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.

ChipMOS Technologies

ChipMOS Technologies  (IMOS), through its subsidiaries, provides semiconductor testing and assembly services and memory and logic/mixed-signal products. This stock is trading up 9.1% to $23.55 in Friday's trading session.

Friday's Volume: 227,000
Three-Month Average Volume: 141,838
Volume % Change: 248%

From a technical perspective, IMOS is soaring sharply higher here right above some near-term support at $21.29 with above-average volume. This surge to the upside on Friday has now pushed shares of IMOS back above its 200-day moving average of $23.10 and briefly above its 50-day moving average of $23.55. This move is now starting to push shares of IMOS within range of triggering a major breakout trade. That trade will hit if IMOS manages to take out some near-term overhead resistance levels at $25.30 to its 52-week high of $25.97 with high volume.

Traders should now look for long-biased trades in IMOS as long as it's trending above Friday's intraday low of $22.03 or above that previous support at $21.29 and then once it sustains a move or close above those breakout levels with volume that hits near or above 141,838 shares. If that breakout kicks off soon, then IMOS will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $28 to $30.

Imperva

Imperva  (IMPV) develops, markets, sells, services and supports cyber security solutions that protect business critical data and applications in the cloud or on premises worldwide. This stock is trading up 5.1% to $42.11 in Friday's trading session.

Friday's Volume: 1.50 million
Three-Month Average Volume: 391,898
Volume % Change: 856%

From a technical perspective, IMPV is ripping higher here right off some near-term support at $39.45 with monster upside volume flows. This strong spike to the upside is now quickly pushing shares of IMPV within range of triggering a near-term breakout trade above some key overhead resistance levels. That trade will trigger if IMPV manages to clear Friday's intraday high of $42.86 to its 50-day moving average of $44.92 with high volume.

Traders should now look for long-biased trades in IMPV as long as it's trending above some key near-term support levels at $39.45 to $38.20 and then once it sustains a move or close above those breakout levels with volume that hits near or above 391,898 shares. If that breakout triggers soon, then IMPV will set up to re-test or possibly take out its next major overhead resistance levels at $47.50 to $49, or even $51 to $53.35.

Mobileye

Mobileye  (MBLY), together with its subsidiaries, designs and develops software and related technologies for camera-based advanced driver assistance systems. This stock is trading up 2.4% to $41.34 in Friday's trading session.

Friday's Volume: 4.29 million
Three-Month Average Volume: 2.79 million
Volume % Change: 299%

From a technical perspective, MBLY is gapping notably higher here with heavy upside volume flows. This stock has been uptrending strong over the last few weeks, with shares moving sharply higher off its low of $32.41 to its intraday high of $42.77. During that uptrend, shares of MBLY have been consistently making higher lows and higher highs, which is bullish technical price action. This jump higher on Friday is now starting to push shares of MBLY within range of triggering a near-term breakout trade above some key overhead resistance levels. That trade will trigger if MBLY manages to take out some near-term overhead resistance levels at $43.34 to $44.50 and then above more resistance at $46 with high volume.

Traders should now look for long-biased trades in MBLY as long as it's trending above Friday's intraday low of $41.27 or above $40 and then once it sustains a move or close above those breakout levels with volume that registers near or above 2.79 million shares. If that breakout hits soon, then MBLY will set up to re-test or possibly take out its next major overhead resistance levels at $50 to $53.

This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.

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