7 Stocks Rising on Big Volume -- Here's How to Trade Them Now

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."

Stocks with unusual volume are something that I tweet about on a daily basis. These are also the exact type of stocks that I love to trade and alert to my subscribers in real-time.

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.

Fabrinet

  • Monday's Volume: 713,000
  • Three-Month Average Volume: 375,462
  • Volume % Change: 108%

Fabrinet  (FN)  provides optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers of optical communication components, modules and sub-systems, industrial lasers, medical devices and sensors. This stock traded up 3.5% to $32.80 in Monday's trading session.

From a technical perspective, Fabrinet spiked notably higher on Monday right off its 20-day moving average of $31.74 a share with strong upside volume flows. This high-volume rip to the upside pushed shares of Fabrinet into breakout territory, since the stock closed above some near-term overhead resistance at $32.72 a share. This move is now quickly pushing this stock within range of triggering another big breakout trade. That trade will trigger if this stock manages to take out Monday's intraday high of $33.01 a share to its 52-week high of $33.11 a share with high volume.

Traders should now look for long-biased trades in Fabrinet as long as it's trending above its 20-day moving average of $31.74 a share or above Monday's intraday low of $31.52 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 375,462 shares. If that breakout fires off 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 $38 to $40 a share.

Xura

  • Monday's Volume: 868,000
  • Three-Month Average Volume: 182,814
  • Volume % Change: 335%

Xura  (MESG)  provides cloud-based and in-network services enablement and monetization software solutions for communication service providers and enterprises worldwide. This stock traded up 2.9% to $22.53 in Monday's trading session.

From a technical perspective, Xura trended notably higher on Monday right off its 200-day moving average of $21.77 a share with strong upside volume flows. This high-volume jump to the upside also managed to push this stock into breakout territory, since shares of Xura cleared and closed above some near-term overhead resistance at $22.42 a share. Market players should now look for a continuation move to the upside in the short-term if this stock manages to take out Monday's intraday high of $22.70 a share with strong upside volume flows.

Traders should now look for long-biased trades in Xura as long as it's trending above its 200-day moving average of $21.77 a share or above more near-term support around $21 a share and then once it sustains a move or close above Monday's intraday high of $22.70 a share with volume that registers near or above 182,814 shares. If that move gets underway soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $24 to $25, or even $25.78 a share.

Aduro BioTech

  • Monday's Volume: 790,000
  • Three-Month Average Volume: 384,138
  • Volume % Change: 101%

Aduro BioTech  (ADRO) , a clinical-stage immunotherapy company, focuses on the discovery, development and commercialization that transform the treatment of challenging diseases. This stock traded up 8.8% to $15.63 in Monday's trading session.

From a technical perspective, Aduro BioTech ripped sharply higher on Monday right off its 50-day moving average of $14.04 a share with strong upside volume flows. This high-volume spike to the upside also managed to push this stock into breakout territory, since shares of Aduro BioTech manage to clear and close above some near-term overhead resistance at $15.06 a share. Market players should now look for a continuation move to the upside in the short-term if this stock manages to clear Monday's intraday high of $16.23 share with high volume.

Traders should now look for long-biased trades in Aduro BioTech as long as it's trending above that breakout level of $15.06 a share or above its 50-day moving average of $14.04 a share and then once it sustains a move or close above Monday's intraday high of $16.23 a share with volume that hits near or above 384,138 shares. If that move gets underway soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $16.74 to $17.72, or even $18 to $19 a share.

Cynosure

  • Monday's Volume: 760,000
  • Three-Month Average Volume: 228,735
  • Volume % Change: 232%

Cynosure  (CYNO)  develops, manufactures and markets aesthetic treatment systems for plastic surgeons, dermatologists and other medical practitioners. This stock traded up 3.1% to $46.27 in Monday's trading session.

From a technical perspective, Cynosure jumped sharply higher on Monday right above its 20-day moving average of $44.61 a share with strong upside volume flows. This stock has been uptrending strong over the last three months, with shares moving higher off its low of $32.90 a share to its recent high of $46.60 a share. During that uptrend, shares of Cynosure have been consistently making higher lows and higher highs, which is bullish technical price action. This rip to the upside on Monday is now quickly pushing this stock within range of triggering a big breakout trade. That trade will trigger if this stock manages to take out some near-term overhead resistance levels at $46.47 to its 52-week high of $46.60 a share with high volume.

Traders should now look for long-biased trades in Cynosure as long as it's trending above its 20-day moving average of $44.61 a share or above more key support levels at $43.62 to $42.80 a share and then once it sustains a move or close above those breakout levels with volume that registers near or above 228,735 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 $50 to $55 a share.

Changeyou.com

  • Monday's Volume: 233,000
  • Three-Month Average Volume: 105,863
  • Volume % Change: 163%

Changeyou.com  (CYOU)  develops and operates online games in the People's Republic of China. This stock traded up 4.6% to $19.19 in Monday's trading session.

From a technical perspective, Changeyou.com spiked sharply higher on Monday right off some previous support at $17.56 a share with above-average volume. This high-volume rip to the upside pushed shares of Changeyou.com back above both its 50-day moving average of $18.44 a share and its 20-day moving average of $18.93 a share. Shares of Changeyou.com are now quickly trending 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 its 200-day moving average of $19.97 a share and then once it clears more key resistance levels at $20.18 to $21 a share with high volume.

Traders should now look for long-biased trades in Changeyou.com as long as it's trending above its 50-day moving average of $18.44 a share or above Monday's intraday low of $17.56 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 105,863 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 $23 to $24, or even $25 a share.

Concert Pharmaceuticals

  • Monday's Volume: 224,000
  • Three-Month Average Volume: 129,678
  • Volume % Change: 75%

Concert Pharmaceuticals  (CNCE) , a clinical stage biopharmaceutical company, discovers and develops small molecule drugs for genetic diseases, inflammatory disease and neurologic disorders. This stock traded up 3.8% to $15.19 in Monday's trading session.

From a technical perspective, Concert Pharmaceuticals trended up notably higher on Monday and briefly broke out above some near-term overhead resistance at $15.32 a share with strong upside volume flows. Market players should now look for a continuation move to the upside in the short-term if shares of Concert Pharmaceuticals manages to clear Monday's intraday high of $15.53 a share with strong upside volume flows.

Traders should now look for long-biased trades in Concert Pharmaceuticals as long as it's trending above Monday's intraday low of $14.64 a share and then once it sustains a move or close above Monday's intraday high of $15.53 a share with volume that hits near or above 129,678 shares. If that move gets underway soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $16 to $16.83, or even its 200-day moving average of $17.51 to $19 a share.

Yirendai

  • Monday's Volume: 1.23 million
  • Three-Month Average Volume: 522,071
  • Volume % Change: 148%

Yirendai  (YRD)  operates as an online consumer finance marketplace that connects borrowers and investors primarily in China. This stock traded up 7.2% to $12.47 in Monday's trading session.

From a technical perspective, Yirendai ripped sharply higher on Monday right off its 20-day moving average of $11.67 a share with strong upside volume flows. This strong rip to the upside briefly pushed shares of Yirendai into breakout territory, after the stock flirted with some near-term overhead resistance at $12.65 a share. This stock is now starting to trend within range of triggering a much bigger breakout trade above some key near-term overhead resistance levels. That breakout will hit if this stock manages to take out Monday's intraday high of $13.09 a share and then once it clears $14 a share to its all-time high of $14.87 a share with high volume.

Traders should now look for long-biased trades in Yirendai as long as it's trending above its 20-day moving average of $11.67 a share or above more key near-term support at $10.30 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 522,071 shares. If that breakout kicks off soon, then this stock will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that move are $17 to $20 a share.

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

More from Opinion

How to Avoid Investing in a John Schnatter: Dumbest Thing on Wall Street

How to Avoid Investing in a John Schnatter: Dumbest Thing on Wall Street

Microsoft Pops on Strong Earnings and Guidance: 8 Key Takeaways

Microsoft Pops on Strong Earnings and Guidance: 8 Key Takeaways

Microsoft's Earnings Provide Fresh Proof That the LinkedIn Deal Is Paying Off

Microsoft's Earnings Provide Fresh Proof That the LinkedIn Deal Is Paying Off

Bitcoin Prices Are Back Up, but Traditional Investors Remain Skeptical

Bitcoin Prices Are Back Up, but Traditional Investors Remain Skeptical

EBay's Soft Guidance Doesn't Reflect Well on its Attempts to Fight Off Amazon

EBay's Soft Guidance Doesn't Reflect Well on its Attempts to Fight Off Amazon