4 Unusual-Volume 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.

IPC Healthcare

IPCM Chart IPCM data by YCharts

IPC Healthcare  (IPCM) provides acute hospitalist and post-acute care services in the U.S. This stock is trading up 1.2% to $57.09 in Thursday's trading session.

Thursday's Volume: 111,000
Three-Month Average Volume: 124,355
Volume % Change: 92%

From a technical perspective, IPC Healthcare is spiking modestly higher here right off some near-term support at $56 with strong upside volume flows. This stock has been uptrending tremendously strong over the last six months, with shares soaring higher from its low of $40 to its recent high of $58.73 a share. During that uptrend, shares of IPC Healthcare have been making mostly higher lows and higher highs, which is bullish technical price action. This slight bounce to the upside on Thursday is now starting to push shares of IPC Healthcare within range of triggering a near-term breakout trade. That trade will hit if this stock manages to take out its 52-week high of $58.73 with high volume.

Traders should now look for long-biased trades in IPC Healthcare as long as it's trending above some near-term support around $56 and then once it sustains a move or close above its 52-week high of $58.73 with volume that hits near or above 124,355 shares. If that breakout hits 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 $$63 to $65 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 13.8% at $11.46 in Thursday's trading session.

Thursday's Volume: 277,488
Three-Month Average Volume: 70,130
Volume % Change: 555%

From a technical perspective, Connecture is ripping sharply higher here back above its 50-day moving average of $11.03 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 explode higher and trend above some key near-term overhead resistance levels. This strong move to the upside on Thursday is now starting to push this stock within range of triggering another key breakout trade. That trade will hit if this stock manages to take out some key near-term overhead resistance levels $12 to $12.79 with high volume.

Traders should now look for long-biased trades in Connecture as long as it's trending above its 50-day at $11.03 or above some more key near-term support at $10 and then once it sustains a move or close above those breakout levels with volume that hits near or above 70,130 shares. If that breakout begins soon, then this stock will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $14.39.

Allegiant Travel Company

ALGT Chart ALGT data by YCharts

Allegiant Travel  (ALGT), a leisure travel company, focuses on the provision of travel services and products to residents of under-served cities in the U.S. This stock is trading up 4.5% to $183.06 in Thursday's trading session.

Thursday's Volume: 162,000
Three-Month Average Volume: 164,405
Volume % Change: 104%

From a technical perspective Allegiant Travel is ripping to the upside here right above some near-term support at $175 with decent upside volume flows. This stock has been uptrending strong over the last month and change, with shares moving higher from its low of $151.04 to its intraday high of $183.51. During that uptrend, shares of Allegiant Travel have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed this stock within range of triggering a near-term breakout trade. That trade will hit shares of Allegiant Travel manages to take out some key overhead resistance at $185 with high volume.

Traders should now look for long-biased trades in Allegiant Travel as long as it's trending above some key near-term support at $175 and then once it sustains a move or close above $185 with volume that registers near or above 164,405 shares. If that breakout triggers soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $190 to $195.50, or even $198.90.

Web.com Group

WWWW Chart WWWW data by YCharts

Web.com Group (WWWW) provides Internet services to small businesses in North America, South America, and the U.K. This stock is trading up 5.2% to $23.74 in Thursday's trading session.

Thursday's Volume: 759,000
Three-Month Average Volume: 460,545
Volume % Change: 193%

From a technical perspective, Web.com Group is ripping to the upside here right above its 50-day moving average of $22.01 with strong upside volume flows. This large spike to the upside on Thursday has now pushed shares of Web.com Group into breakout territory, since this stock has cleared some near-term overhead resistance at $23.39. This move is quickly starting to push this stock within range of triggering a much bigger breakout trade. That trade will trigger if shares of Web.com Group manage to take out some key near-term overhead resistance levels at $23.83 to $24.05 with high volume.

Traders should now look for long-biased trades in Web.com Group as long as it's trending above some near-term support levels at $23 or at its 50-day moving average of $22.01 and then once it sustains a move or close above those breakout levels with volume that registers near or above 460,545 shares. If that breakout develops soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $26 to $28 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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