Stock Quotes in this Article: BJRI, SODA, RES


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.

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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.

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

SodaStream International

SodaStream International (SODA) engages in the development, manufacture, and sale of home beverage carbonation systems that enable consumers to transform ordinary tap water instantly into carbonated soft drinks and sparkling water. This stock closed up 7.6% to $40.45 in Monday's trading session.

Monday's Volume: 2.44 million

Three-Month Average Volume: 1.38 million

Volume % Change: %

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From a technical perspective, SODA ripped higher here with above-average volume. This stock recently formed a triple bottom chart pattern at $36.68, $36.55 and $35.27. Following that bottom, shares of SODA have started to rebound sharply higher with strong upside volume flows. That move is quickly pushing shares of SODA within range of triggering a big breakout trade. That trade will hit if SODA manages to take out some near-term overhead resistance at $40.90 to its gap-down-day high from last month at $41.62 with high volume.

Traders should now look for long-biased trades in SODA as long as it's trending above Monday's low of $38 or above some more near-term support at $37.28 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.38 million shares. If that breakout hits soon, then SODA will set up to re-fill some of its previous gap-down-day zone that started just above $50.

BJ's Restaurants

BJ's Restaurants (BJRI) owns and operates casual dining restaurants in the U.S. The company's restaurants offer pizzas, beers, appetizers, entrees, pastas, sandwiches, salads, and desserts. This stock closed up 2.6% to $28.66 in Monday's trading session.

Monday's Volume: 1.90 million

Three-Month Average Volume: 440,360

Volume % Change: 305%

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From a technical perspective, BJRI trended modestly higher here with above-average volume. This stock has been downtrending for the last month and change, with shares moving lower from its high of $32 to its recent low of $26.98. During that downtrend, shares of BJRI have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of BJRI have started to spike higher off that $26.98 low and the stock now looks ready to reverse its downtrend and possibly enter a new uptrend.

Traders should now look for long-biased trades in BJRI as long as it's trending above that recent low of $26.98 and then once it sustains a move or close above those Monday's high of $28.67 to its 50-day moving average of $29.68 with volume that hits near or above 440,360 shares. If we get that move soon, then BJRI will set up to re-test or possibly take out its next major overhead resistance levels $32 to $32.50, or even $33.61.

RPC

RPC (RES) provides oilfield services and equipment for oil and gas companies engaged in the exploration, production, and development of oil and gas properties in the U.S., Canada, Eastern Europe, Latin America, Africa, the Middle East, China, New Zealand. This stock closed up 3.5% at $17.10 in Monday's trading session.

Monday's Volume: 2.06 million

Three-Month Average Volume: 717,326

Volume % Change: 211%

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From a technical perspective, RES jumped notably higher here right above some near-term support at $16.06 with above-average volume. Market players should now look for a continuation move higher in the short-term if RES manages to take out Monday's high of $17.44 to its 50-day moving average of $17.69 with high volume.

Traders should now look for long-biased trades in RES as long as it's trending above some key near-term support at $16.06 and then once it sustains a move or close above $17.44 to $17.69 with volume that's near or above 717,326 shares. If we get that move soon, then RES will set up to re-test or possibly take out its next major overhead resistance levels at $18 to its 52-week high at $19.38. Any high-volume move above those levels will then give RES a chance to tag or trend north of $20.

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.


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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.