6 Stocks Rising on Unusual Volume 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.

Abaxis

ABAX Chart ABAX data by YCharts

Abaxis  (ABAX) develops, manufactures, markets and sells portable blood analysis systems for use in human or veterinary patient care settings to provide blood constituent measurements for clinicians worldwide. This stock is trading up 1.4% to $52.72 in Monday's trading session.

Monday's Volume: 130,000
Three-Month Average Volume: 163,905
Volume % Change: 130%

From a technical perspective, Abaxis is trending higher here right off some near-term support at $52 with decent upside volume flows. This stock recently gapped down sharply from around $63 to under $55 with heavy downside volume flows. Following that move, shares of Abaxis have started to rebound off its post-gap low of $51.25 a share.

This modest move to the upside on Monday is now starting to push shares of Abaxis within range of triggering a major breakout trade. That trade will trigger if Abaxis manages to take out some key near-term overhead resistance levels at $53.68 to $55.68 a share and then above both its 50-day at $55.71 and its 200-day at $56.33 with high volume.

Traders should now look for long-biased trades in Abaxis as long as it's trending above some key near-term support levels at $52 or at $51 and then once it sustains a move or close above those breakout levels with volume that hits near or above 163,905 shares. If that breakout gets hits soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $58 to $60.

Fiat Chrysler Automobiles

FCAU Chart FCAU data by YCharts

Fiat Chrysler Automobiles  (FCAU), an automotive group, designs, engineers, manufactures, distributes, and sells vehicles and components. This stock is trading up 3.8% to $15.77 in Monday's trading session.

Monday's Volume: 5.70 million
Three-Month Average Volume: 5.43 million
Volume % Change: 157%

From a technical perspective, Fiat Chrysler Automobiles is ripping higher here back above its 50-day moving average of $15.67 with strong upside volume flows. This stock recently formed a double bottom chart pattern at $15.21 to $15.03 a share. Following that bottom, shares of Fiat Chrysler Automobiles have now started to spike higher and move within range of triggering a major breakout trade above some key near-term overhead resistance levels. That trade will hit if this stock manages to take out some key near-term overhead resistance levels at $16.05 to $16.47 and then above $16.73 to its 52-week high of $17.08 with high volume.

Traders should now look for long-biased trades in Fiat Chrysler Automobiles as long as it's trending above some near-term support at $16 or above some previous support at $15.03 and then once it sustains a move or close above those breakout levels with volume that hits near or above 5.43 million shares. If that breakout triggers soon, then this stock will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $20 to $25 a share.

Connecture

CNXR Chart CNXR data by YCharts

Connecture  (CNXR), together with its subsidiaries, operates as a Web-based consumer shopping, enrollment, and retention platform for health insurance distribution. This stock is trading up 6.5% at $10.12 in Monday's trading session.

Monday's Volume: 111,000
Three-Month Average Volume: 68,304
Volume % Change: 233%

From a technical perspective, Connecture is ripping sharply higher here with strong upside volume flows. This stock recently formed a double bottom chart pattern at $8.50 to $8.57 a share. Following that bottom, shares of Connecture have started to rip to the upside with expanding upside volume days. This spike higher on Monday is now starting to push shares of Connecture within range of triggering a major breakout trade above some key near-term overhead resistance levels. That trade will hit if this stock manages to take out some key near-term overhead resistance levels at $10.21 to its 50-day moving average of $11.15 with high volume.

Traders should now look for long-biased trades in Connecture as long as it's trending above Monday's intraday low of $9.61 or above those double bottom support levels and then once it sustains a move or close above those breakout levels with volume that hits near or above 68,304 shares. If that breakout hits soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $12.79 to its 52-week high of $14.39.

Azure Midstream Partners

AZN Chart AZN data by YCharts

Azure Midstream Partners  (AZUR) acquires, owns, develops and operates midstream energy assets in the U.S. This stock is trading up 2.8 % to $13.36 in Monday's trading session.

Monday's Volume: 192,000
Three-Month Average Volume: 86,461
Volume % Change: 306%

From a technical perspective Azure Midstream Partners is spiking notably higher here right above its recent low of $12.04 with above-average volume. This stock recently gapped down lower from its high of close to $16 e to under $14 with heavy downside volume flows. Following that move, shares of Azure Midstream Partners continued to trend lower hitting a new 52-week low of $12.04 a share. This stock has now started to rebound off that 52-week low and it's beginning to move within range of triggering a major breakout trade. That trade will hit if this stock manages to take out its recent gap-down-day high at around $14 a share with high volume.

Traders should now look for long-biased trades in Azure Midstream Partners as long as it's trending above Monday's intraday low $12.85 and then once it sustains a move or close above $14 a share with volume that registers near or above 86,461 shares. If that breakout begins soon, then this stock will set up to re-fill some of its recent gap-down-day zone that started near $16. If that gap gets filled with volume, then this stock could easily tag its next major overhead resistance levels at $16.36 to $17.50 a share.

Titan Machinery

TITN Chart TITN data by YCharts

Titan Machinery  (TITN) owns and operates a network of full service agricultural and construction equipment stores in the U.S. and Europe. This stock is trading up 2.6% to $15.17 in Monday's trading session.

Monday's Volume: 201,000
Three-Month Average Volume: 137,486
Volume % Change: 185%

From a technical perspective, Titan Machinery is jumping notably higher here right above its 50-day moving average of $14.31 with above-average e volume. This spike to the upside on Monday is starting to push shares of Titan Machinery within range of triggering a major breakout trade above some key overhead resistance levels. That trade will trigger if this stock manages to take out some key near-term overhead resistance levels at $15.32 to $15.94 with high volume.

Traders should now look for long-biased trades in Titan Machinery as long as it's trending above its 50-day moving average of $14.31 or above its 200-day moving average of $13.70 and then once it sustains a move or close above those breakout levels with volume that registers near or above 137,486 shares. If that breakout begins soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at its 52-week high of $16.73 to $18.25, or even $19 a share.

ARM Holdings

ARMH Chart ARMH data by YCharts

ARM Holdings  (ARMH), together with its subsidiaries, designs microprocessors, physical intellectual property and related technology and software. This stock is trading up 1.4% at $53.73 in Monday's trading session.

Monday's Volume: 2.89 million
Three-Month Average Volume: 1.44 million
Volume % Change: 341%

From a technical perspective, ARM Holdings is trending modestly higher here right above some key near-term support levels at $53 to its 50-day moving average of $52.32 with strong upside volume flows. This stock recently formed a double bottom chart pattern at $50.43 to $50.89 a share. Following that bottom, shares of ARM Holdings have now started to spike higher and it's beginning to trend within range of triggering a major breakout trade. That trade will hit if ARM Holdings manages to take out some key overhead resistance levels at $54 to its 52-week high of $54.82 with high volume.

Traders should now look for long-biased trades in ARM Holdings as long as it's trending above some near-term support levels at $53 or above its 50-day at $52.32 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.44 million shares. If that breakout begins soon, then this stock will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $60 to $65, or $70 a share.

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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