4 Breakout Stocks Spiking 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.

Cone Midstream Partners

Cone Midstream Partners (CNNX) acquires, owns, operates and develops natural gas Cone and other midstream energy assets in the Marcellus Shale in Pennsylvania and West Virginia. This stock is trading up 2.1% to $22.74 in Monday's trading session.

Monday's Volume: 186,000
Three-Month Average Volume: 105,044
Volume % Change: 327%

From a technical perspective, CNNX is trending higher here right above some near-term support at $17.65 with above-average volume. This stock recently formed a double bottom chart pattern at $17.05 to $16.85. Following that bottom, shares of CNNX have now started to uptrend a bit and it's beginning to flirt with its 50-day moving average of $18.24. That move is starting to push shares of CNNX within range of triggering a near-term breakout trade. That trade will trigger if CNNX manages to take out some key near-term overhead resistance levels at $18.97 to $20 with high volume.

Traders should now look for long-biased trades in CNNX as long as it's trending above some near-term support at $17.65 and then once it sustains a move or close above those breakout levels with volume that hits near or above 105,044 shares. If that breakout begins soon, then CNNX will set up to re-test or possibly take out its next major overhead resistance levels at $22 to $23, or even $25.

Fluidigm

Fluidigm  (FLDM) creates, manufactures and markets technologies and life science tools focused on the exploration and analysis of single cells, as well as the industrial application of genomics. This stock is trading up 5.9% to $28.55 in Monday's trading session.

Monday's Volume: 373,000
Three-Month Average Volume: 272,783
Volume % Change: 185%

From a technical perspective, FLDM is ripping sharply higher here right above some near-term support at $25.63 with above-average volume. This stock recently gapped down big from over $38 to its recent low of $25.63 with heavy downside volume. Shares of FLDM have now started to rip to the upside off that gap-down-day low and it's beginning to move within range of triggering a major breakout trade . That trade will hit if FLDM manages to take out its recent gap-down-day high of $29 with high volume.

Traders should now look for long-biased trades in FLDM as long as it's trending above Monday's intraday low of $26.33 or above that gap-down-day low of $25.63 and then once it sustains a move or close above $29 with volume that hits near or above 272,783 shares. If that breakout hits soon, then FLDM will set up to re-fill some of its previous gap-down-day zone that started above $38 a share.

Rentech Nitrogen Partners

Rentech Nitrogen Partners (RNF) produces and sells nitrogen fertilizer products in the U.S. and internationally. This stock is trading up 6.2% at $15.49 in Monday's trading session.

Monday's Volume: 273,000
Three-Month Average Volume: 103,898
Volume % Change: 510%

From a technical perspective, RNF is spiking sharply higher here right above its 50-day moving average of $14.92 with strong upside volume flows. This stock recently formed a double bottom chart pattern, after shares found buying interest at $13.86 and then $13.91. This stock has now started to gap higher above those support levels and back above its 50-day moving average. That move is quickly pushing shares of RNF within range of triggering major breakout trade above some key near-term overhead resistance levels. That trade will hit if RNF manages to take out some key near-term overhead resistance levels at Monday's intraday high of $15.77 and then above $16.12 with high volume.

Traders should now look for long-biased trades in RNF as long as it's trending above its 50-day at $14.92 or above those recent double bottom support levels and then once it sustains a move or close above those breakout levels with volume that hits near or above 103,898 shares. If that breakout triggers soon, then RNF will set up to re-test or possibly take out its next major overhead resistance levels at its 52-week high of $17.71 or $19.50, or even $20.50.

INC Research Holdings

INC Research Holdings  (INCR), a contract research organization, provides various clinical development services for the biopharmaceutical and medical device industries. This stock is trading up 2.3% to $31.01 in Monday's trading session.

Monday's Volume: 274,000
Three-Month Average Volume: 192,356
Volume % Change: 353%

From a technical perspective INCR is spiking notably higher here right above some near-term support at $29.62 with strong upside volume flows. This spike to the upside on Monday is now starting to push shares of INCR within range of triggering a near-term breakout trade above some key overhead resistance levels. That trade will hit if INCR manages to take out some key near-term overhead resistance levels at its 50-day moving average of $31.81 to around $32 to $33.50 with high volume.

Traders should now look for long-biased trades in INCR as long as it's trending above some key near-term support levels at $29.62 or at $29 and then once it sustains a move or close above those breakout levels with volume that registers near or above 192,356 shares. If that breakout triggers soon, then INCR will set up to re-test or possibly take out its next major overhead resistance levels at $35 to $36, or even $38 to its 52-week high of $38.76.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

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