Why These 7 Stocks Are Poised to Explode
Here comes the gains

Professional traders running mutual funds and hedge funds don't just look at a stock's price moves, they 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 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.

RH

RH (RH) , together with its subsidiaries, engages in home furnishing retail sales. The company was previously known as Restoration Hardware. This stock closed up 2.8% to $26.99 in Thursday's trading session.

  • Thursday's Volume: 9.80 million
  • Three-Month Average Volume: 2.15 million
  • Volume % Change: 415%

From a technical perspective, RH spiked notably higher on Thursday right above some near-term support at $25.29 a share with monster upside volume flows.

This high-volume move to the upside is now quickly pushing shares of RH 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 some near-term overhead resistance levels at $27.21 to around $27.50 a share with high volume.

Traders should now look for long-biased trades in RH as long as it's trending above Thursday's intraday low of $25.73 a share or above more near-term support at $25.29 a share, and then once it sustains a move or close above those breakout levels with volume that hits near or above 2.15 million shares.

If that breakout triggers soon, then this stock will set up to retest or possibly take out its next major overhead resistance levels at its 20-day moving average of $28.42 a share to $29, or even $30 to $31 a share.

Axcelis Technologies

Axcelis Technologies (ACLS) designs, manufactures and services ion implantation and other processing equipment used in the fabrication of semiconductor chips worldwide. This stock closed up 4.4% to $16.35 in Thursday's trading session.

  • Thursday's Volume: 666,000
  • Three-Month Average Volume: 149,908
  • Volume % Change: 440%

From a technical perspective, Axcelis Technologies gapped up sharply higher on Thursday and broke out above some near-term overhead resistance levels at $15.82 to $16.20 a share with monster upside volume flows.

This high-volume rip to the upside is now quickly pushing shares of Axcelis Technologies within range of triggering another big breakout trade. That trade will trigger if this stock manages to take out Thursday's intraday high of $16.50 a share, and then once it clears its 52-week high of $16.55 a share with high volume.

Traders should now look for long-biased trades in Axcelis Technologies as long as it's trending above its 20-day moving average of $15.46 a share, or above its 50-day moving average of $14.48 a share, and then once it sustains a move or close above those breakout levels with volume that hits near or above 149,908 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 breakout are $18 to $20, or even $22 a share.

Boot Barn Holdings

Boot Barn Holdings (BOOT) , a lifestyle retail company, operates specialty retail stores in the U.S. This stock closed up 10.1% to $11.95 in Thursday's trading session.

  • Thursday's Volume: 1.04 million
  • Three-Month Average Volume: 361,966
  • Volume % Change: 245%

From a technical perspective, Boot Barn Holdings ripped sharply higher on Thursday, back above both its 200-day moving average of $10.98 a share and its 20-day moving average of $11.62 a share with strong upside volume flows.

This high-volume rip to the upside is now quickly pushing shares of Boot Barn Holdings 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 Thursday's intraday high of $12.10 a share and then once it clears more near-term overhead resistance levels at $12.40 to around $12.50 a share with high volume.

Traders should now look for long-biased trades in Boot Barn Holdings as long as it's trending above some near-term support at $11.50 a share or above its 200-day moving average of $10.98 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 361,966 shares. If that breakout hits soon, then this stock will set up to retest or possibly take out its next major overhead resistance levels at $13 to its 50-day moving average of $13.35 a share, or even $14 to $14.50 a share.

Tractor Supply

Tractor Supply (TSCO) operates rural lifestyle retail stores in the U.S. This stock closed up 1.8% to $73.71 in Thursday's trading session.

  • Thursday's Volume: 6.50 million
  • Three-Month Average Volume: 1.56 million
  • Volume % Change: 394%

From a technical perspective, Tractor Supply trended up modestly higher on Thursday right above some near-term support at $71.61 a share with heavy upside volume flows. This high-volume spike to the upside briefly pushed this stock back above both its 20-day moving average of $75.17 a share and its 50-day moving average of $75.71 a share, before it closed below both of those levels at $73.71 a share.

Shares of Tractor Supply are now starting to trend 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 Thursday's intraday high of $76 a share and then once it clears more key resistance at $78.25 a share with high volume.

Traders should now look for long-biased trades in Tractor Supply as long as it's trending above some near-term support at $71.61 a share and then once it sustains a move or close above those breakout levels with volume that registers near or above 1.56 million shares. If that breakout develops soon, then this stock will set up to refill some of its previous gap-down-day zone from last September that started near $84 a share.

Citrix Systems

Citrix Systems (CTXS) develops and sells products and services that enable delivery of applications and data over public, private or hybrid clouds or networks to various types of devices. This stock closed up 5.2% to $74.95 in Thursday's trading session.

  • Thursday's Volume: 4.66 million
  • Three-Month Average Volume: 1.39 million
  • Volume % Change: 234%

From a technical perspective, Citrix Systems spiked sharply higher on Thursday right above some near-term support at $70 a share and back above both its 50-day moving average of $71.92 a share and its 20-day moving average of $73.08 a share with heavy upside volume flows. This stock has been uptrending strongly over the last five months, with shares moving higher off its low of $64.19 a share to its recent high of $76.37 a share.

During that uptrend, shares of Citrix Systems have been making mostly higher lows and higher highs, which is bullish technical price action. That strong uptrend has now pushed this stock within range of triggering a near-term breakout trade. That trade will trigger if this stock manages to take out Thursday's intraday high of $75.57 a share and then once it clears more key resistance at $76.37 a share on high volume.

Traders should now look for long-biased trades in Citrix Systems as long as it's trending above either its 20-day moving average of $73.08 a share or above its 50-day moving average of $71.92 a share, and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.39 million shares. If that breakout takes hold soon, then this stock will set up to tag $80 to $85, or even $90 a share.

Oneok Partners

Oneok Partners (OKS) engages in the gathering, processing, storage and transportation of natural gas in the U.S. This stock closed up 3.6% to $53.56 in Thursday's trading session.

  • Thursday's Volume: 4.32 million
  • Three-Month Average Volume: 1.02 million
  • Volume % Change: 413%

From a technical perspective, Oneok Partners spiked notably higher on Thursday right above some near-term support at $51 a share with monster upside volume flows. This stock recently gapped up sharply higher from $42.21 to its new 52-week high of $57.41 a share with huge volume.

Shares of Oneok Partners are now setting up to trigger a near-term breakout trade following that high-volume gap to the upside. That trade will trigger if this stock manages to take out Thursday's intraday high of $53.94 a share and then once it clears its 52-week high of $57.41 a share with high volume.

Traders should now look for long-biased trades in Oneok Partners as long as it's trending above some near-term support at around $51 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.02 million 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 $60 to $65, or even $70 a share.

Chunghwa Telecom

Chunghwa Telecom (CHT) provides telecommunication services primarily in Taiwan. This stock closed up 2.1% to $32.03 in Thursday's trading session.

  • Thursday's Volume: 1.07 million
  • Three-Month Average Volume: 318,553
  • Volume % Change: 242%

From a technical perspective, Chunghwa Telecom trended notably higher on Thursday right off its 20-day moving average of $31.88 a share with strong upside volume flows. This stock recently formed a triple bottom chart pattern, after shares found some buying interest at $31.32, $31.45 and $31.28 a share over the last month and change. Following that potential bottom, shares of Chunghwa Telecom have now started to spike higher with heavy upside volume flows. That high-volume jump is now quickly pushing this stock within range of triggering a near-term breakout trade. That trade will trigger if this stock manages to take out its 50-day moving average of $32.26 a share and then once it clears more near-term overhead resistance levels at $32.50 to $32.83 a share with high volume.

Traders should now look for long-biased trades in Chunghwa Telecom as long as it's trending above those triple bottom support levels and then once it sustains a move or close above those breakout levels with volume that hits near or above 318,553 shares. If that breakout kicks off soon, then this stock will set up to retest or possibly take out its next major overhead resistance levels at $33.65 to its 200-day moving average of $34.13 a share, or even $35 to $36 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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