Stock Quotes in this Article: LCI, LQDT, SALE

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.

RetailMeNot

RetailMeNot (SALE) operates a digital coupon marketplace that connects consumers with retailers and brands. This stock closed up 3.4% to $38.54 in Friday's trading session.

Friday's Volume: 2.58 million

Three-Month Average Volume: 634,226

Volume % Change: 275%

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From a technical perspective, SALE trended higher here with heavy upside volume. This stock has been uptrending strong for the last two months, with shares moving higher from its low of $25.51 to its recent high of $39.38. During that uptrend, shares of SALE have been consistently making higher lows and higher highs, which is bullish technical price action. This spike on Friday is quickly pushing shares of SALE within range of triggering a big breakout trade. That trade will hit if SALE manages to take out some key overhead resistance levels at $39.38 to its all-time high at $39.50 with high volume.

Traders should now look for long-biased trades in SALE as long as it's trending above $36 or $35.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 634,226 shares. If that breakout triggers soon, then SALE will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $45 to $50.

Lannett

Lannett (LCI) develops, manufactures, packages, markets and distributes generic versions of branded pharmaceutical products in the U.S. This stock closed up 12.3% at $35.97 in Friday's trading session.

Friday's Volume: 1.25 million

Three-Month Average Volume: 341,082

Volume % Change: 255%

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From a technical perspective, LCI gapped up sharply higher here back above its 50-day moving average of $33.02 with strong upside volume. This move is quickly pushing shares of LCI within range of triggering a major breakout trade. That trade will hit if LCI manages to take out some near-term overhead resistance levels at $36.92 to its 52-week high at $38.16 with high volume.

Traders should now look for long-biased trades in LCI as long as it's trending above Friday's low of $35.05 or above its 50-day at $33.02 and then once it sustains a move or close above those breakout levels with volume that's near or above 341,082 shares. If that breakout hits soon, then LCI will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $45 to $50.

Liquidity Services

Liquidity Services (LQDT), operates online auction marketplaces for sellers and buyers of surplus, salvage and scrap assets in the U.S. This stock closed up 15.5% at $24.61 in Friday's trading session.

Friday's Volume: 2.07 million

Three-Month Average Volume: 676,782

Volume % Change: 239%

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From a technical perspective, LQDT gapped up sharply higher here back above its 50-day moving average of $22.20 with strong upside volume. This move also pushed shares of LQDT into breakout territory, since the stock took out some near-term overhead resistance levels at $24.01 to $24.24 and at $24.50. Market players should now look for a continuation move higher in the short-term if LQDT manages to take out Friday's high of $25.74 with strong volume.

Traders should now look for long-biased trades in LQDT as long as it's trending above Friday's low of $23.08 or above its 50-day at $22.20 and then once it sustains a move or close above $25.74 with volume that's near or above 676,782 shares. If we get that move soon, then LQDT will set up to re-test or possibly take out its next major overhead resistance levels at $28 to its 200-day moving average of $29.24. Any high-volume move above those levels will then give LQDT a chance to tag $32.

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.