Stock Quotes in this Article: ABAX, ANGI, AERI

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.

>>5 Stocks Poised to Break Out

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.

>>5 Toxic Big Pharma Stocks You Need to Sell

With that in mind, let's take a look at several stocks rising on unusual volume recently.

Aerie Pharmaceuticals

Aerie Pharmaceuticals (AERI), a clinical-stage pharmaceutical company, focuses on the discovery, development, and commercialization of first-in-class therapies for the treatment of patients with glaucoma and other diseases of the eye. This stock closed up 5.7% to $16.49 in Friday's trading session.

Friday's Volume: 357,000

Three-Month Average Volume: 106,481

Volume % Change: 260%

From a technical perspective, AERI ripped higher here right above some near-term support at $14.40 with strong upside volume. This stock has been consolidating and trending sideways for the last month and change, with shares moving between $13.66 on the downside and $17.02 on the upside. This spike higher on Friday pushed shares of AERI right into its 50-day moving average of $16.49 and it's quickly pushing this stock within range of triggering a big breakout trade above the upper-end of its recent sideways trading chart pattern. That trade will hit if AERI manages to take out some key near-term overhead resistance levels at $16.78 to $17.02 with high volume.

Traders should now look for long-biased trades in AERI as long as it's trending above Friday's low of $15.01 or above more near-term support at $14.40 and then once it sustains a move or close above those breakout levels with volume that hits near or above 106,481 shares. If that breakout triggers soon, then AERI will set up to re-test or possibly take out its next major overhead resistance levels at $19 to $22, or even $23.

Abaxis

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 closed up 3.3% at $43.54 in Friday's trading session.

Friday's Volume: 448,000

Three-Month Average Volume: 142,365

Volume % Change: 206%

From a technical perspective, ABAX jumped higher here right above its 50-day moving average of $40.61 with strong upside volume. This move is starting to push shares of ABAX within range of triggering a big breakout trade. That trade will hit if ABAX manages to take out some key overhead resistance levels at $44.68 to $45.37 with high volume.

Traders should now look for long-biased trades in ABAX as long as it's trending above Friday's low of $42.46 or above more near-term support at $41 and then once it sustains a move or close above those breakout levels with volume that hits near or above 142,365 shares. If that breakout hits soon, then ABAX will set up to re-fill some of its previous gap-down-day zone from July of 2013 that stared near $52.

Angie's List

Angie's List (ANGI) operates a consumer-driven solution for its members to research, hire, rate, and review local professionals for home, health care, and automotive service needs. This stock closed up 10.9% to $11.21 in Friday's trading session.

Friday's Volume: 4.99 million

Three-Month Average Volume: 1.14 million

Volume % Change: 324%

From a technical perspective, ANGI gapped sharply higher here and broke out above some near-term overhead resistance at $10.94 with monster upside volume. This stock recently formed a double bottom chart pattern at $9.60 to $9.77. Since that bottom, shares of ANGI have consolidated and now gapped higher and flirted with its 50-day moving average of $11.26. This big spike higher on Friday is quickly pushing shares of ANGI within range of triggering another big breakout trade. That trade will hit if ANGI manages to take out some key near-term overhead resistance at $11.72 with high volume.

Traders should now look for long-biased trades in ANGI as long as it's trending above Friday's low of $10.65 and then once it sustains a move or close above $11.72 with volume that hits near or above 1.14 million shares. If that breakout starts soon, then ANGI will set up to re-test or possibly take out its next major overhead resistance levels at $13 to $14.65.

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:







Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.