7 Breakout Stocks Spiking on Big Volume

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.

Agree Realty

  • Monday's Volume: 366,000
  • Three-Month Average Volume: 168,689
  • Volume % Change: 115%

Agree Realty  (ADC) , a real estate investment trust, engages in the ownership, development, acquisition and management of retail properties, which are primarily leased to national and regional retail companies in the U.S. This stock closed up 1.3% to $50.32 in Monday's trading session.

From a technical perspective, Agree Realty spiked notably higher on Monday right above its 50-day moving average of $48.53 a share with strong upside volume flows. This high-volume bump higher is now quickly pushing shares of Agree Realty within range of triggering a big breakout trade above some key overhead resistance levels. That trade will trigger if this stock manages to take out Monday's intraday high of $50.66 a share and then once it clears its 52-week high of $51.33 a share with high volume.

Traders should now look for long-biased trades in Agree Realty as long as it's trending above its 50-day moving average of $48.53 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 168,689 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 $55 to $60 a share.

AutoZone

  • Monday's Volume: 753,000
  • Three-Month Average Volume: 274,713
  • Volume % Change: 159%

AutoZone  (AZO)  retails and distributes automotive replacement parts and accessories. This stock closed up 1.8% to $758.88 in Monday's trading session.

From a technical perspective, AutoZone spiked notably higher on Monday right off its 20-day moving average of $741.62 a share with strong upside volume flows. This high-volume move higher is now quickly pushing shares of AutoZone within range of triggering a near-term breakout trade above some key overhead resistance levels. That trade will trigger if this stock manages to take out Monday's intraday high of $759.95 a share and then above more key resistance at $760.98 a share with high volume.

Traders should now look for long-biased trades in AutoZone as long as it's trending above some near-term support at $750 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 274,713 shares. If that breakout kicks off soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $767.30 a share to its 50-day moving average of $774 a share, or even $780 to $785 a share.

Spirit Airlines

  • Monday's Volume: 3.24 million
  • Three-Month Average Volume: 1.20 million
  • Volume % Change: 164%

Spirit Airlines  (SAVE)  provides low-fare airline services. This stock closed up 3.5% to $41.13 in Monday's trading session.

From a technical perspective, Spirit Airlines spiked sharply higher on Monday right above its 20-day moving average of $39.09 a share and back above its 50-day moving average of $40.47 a share with strong upside volume flows. This high-volume jump to the upside is now quickly pushing shares of Spirit Airlines within range of triggering a near-term breakout trade above some key overhead resistance levels. That trade will trigger if this stock manages to take out Monday's intraday high of $41.15 a share and then once it clears more near-term resistance levels at $41.39 to $41.65 a share with high volume.

Traders should now look for long-biased trades in Spirit Airlines as long as it's trending above its 50-day moving average of $40.47 a share or above its 20-day moving average of $39.09 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.20 million 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 its 200-day moving average of $43.44 a share or $45.39 a share.

Communications Sales & Leasing

  • Monday's Volume: 4.20 million
  • Three-Month Average Volume: 1.27 million
  • Volume % Change: 275%

Communication Sales & Leasing  (CSAL) , an internally managed real estate investment trust, engages in the acquisition and construction of mission critical communications infrastructure; and provision of wireless infrastructure solutions for the communications industry. This stock closed up 2.1% to $32.70 in Monday's trading session.

From a technical perspective, Communications Sales & Leasing spiked notably higher on Monday right above its 20-day moving average of $31.35 a share with monster upside volume flows. This high-volume bump to the upside managed to push this stock into breakout and new all-time territory, since it closed above some key near-term resistance at $32.47 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 $32.73 a share with strong upside volume flows.

Traders should now look for long-biased trades in Communications Sales & Leasing as long as it's trending above Monday's intraday low of $31.82 a share or above its 20-day moving average of $31.35 a share and then once it sustains a move or close above its new all-time high of $32.73 a share with volume that registers near or above 1.27 million shares. If that move gets underway 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 $35 to $40 a share, or even $45 a share.

Tucows

  • Monday's Volume: 299,000
  • Three-Month Average Volume: 70,680
  • Volume % Change: 308%

Tucows  (TCX)  provides network access, domain names and other Internet services in the U.S., Canada and Germany. This stock closed up 2.5% to $30.52 in Monday's trading session.

From a technical perspective, Tucows trended notably higher on Monday within strong upside volume flows. This stock has been uptrending over the last two months, with shares moving higher off its low of $25.78 a share to its intraday high on Monday of $31.54 a share. During that uptrend, shares of Tucows have been making mostly higher lows and higher highs, which is bullish technical price action. This high-volume jump higher is now quickly pushing shares of Tucows 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 Monday's intraday high of $31.54 a share and then once it clears its 52-week high of $32.03 to $32.23 a share with high volume.

Traders should now look for long-biased trades in Tucows as long as it's trending above its previous breakout level of $28.63 a share and then once it sustains a move or close above these new breakout levels with volume that hits near or above 70,680 shares. If that breakout develops 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 $35 to $40, or even $45 a share.

Twitter

  • Monday's Volume: 95.40 million
  • Three-Month Average Volume: 27.13 million
  • Volume % Change: 268%

Twitter (TWTR) operates as a global platform for public self-expression and conversation in real time. This stock closed up 3.3% to $23.37 in Monday's trading session.

From a technical perspective, Twitter gapped-up sharply higher on Monday with monster upside volume flows. This stock has been uptrending strong over the last five months, with shares moving higher off its low of $13.73 a share to its intraday high on Monday of $23.57 a share. During that uptrend, shares of Twitter have been making mostly higher lows and higher highs, which is bullish technical price action. 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 $23.57 a share with strong volume.

Traders should now look for long-biased trades in Twitter as long as it's trending above Monday's intraday low of $21.65 a share and then once it sustains a move or close above Monday's intraday high of $23.57 a share with volume that hits near or above 27.13 million 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 $25 to $26.25, or even $30 to its 52-week high of $31.87 a share.

LSI Industries

  • Monday's Volume: 244,000
  • Three-Month Average Volume: 87,748
  • Volume % Change: 202%

LSI Industries  (LYTS) , provides corporate visual image solutions in the U.S., Canada, Australia and Latin America. This stock closed up 5.5% to $11.03 in Monday's trading session.

From a technical perspective, LSI Industries ripped sharply higher on Monday right above its 50-day moving average of $10.49 a share and briefly back above its 200-day moving average of $11.12 a share with strong upside volume flows. This high-volume jump to the upside is now quickly pushing shares of LSI Industries within range of triggering a big breakout trade above some key overhead resistance levels. That trade will trigger if this stock manages to take out Monday's intraday high of $11.36 a share and then once it clears more near-term overhead resistance levels at $11.58 to $11.70 a share with high volume.

Traders should now look for long-biased trades in LSI Industries as long as it's trending above Monday's intraday low of $10.63 a share or above its 50-day moving average of $10.49 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 87,748 shares. If that breakout hits soon, then this stock will set up to re-test or possibly take out its next major overhead resistance level at $12.50 to $12.87, or even $13 to its 52-week high of $13.45 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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