Stock Quotes in this Article: ABMD, ASML, LULU

WINDERMERE, Fla. (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.

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by “superinvestors.”

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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 today.

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ASML Holding

ASML Holding (ASML) is a provider of lithography systems for the semiconductor industry. This stock is trading up 1.8% at $69 in recent trading.

Today’s Volume: 4.91 million

Average Volume: 1.89 million

Volume % Change: 358%

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From a technical perspective, ASML is bouncing modestly higher here and briefly back above its 50-day moving average at $70.40 with heavy upside volume. At last check, ASML has hit an intraday high of $72.09, and volume is well above its three-month average action of 1.89 million shares. This move is starting to push ASML within range of triggering a near-term breakout trade. That trade will hit if ASML manages to clear some near-term overhead resistance levels at $71.90 to $73.24 with high volume.

Traders should now look for long-biased trades in ASML as long as it’s trending above its 50-day at $70.40, and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.89 million shares. If that breakout triggers soon, then ASML will set up to re-test or possibly take out its next major overhead resistance levels at $74 to $78.30.

Abiomed

Abiomed (ABMD) is a provider of mechanical circulatory support devices and offers a continuum of care in heart recovery to heart failure patients. This stock is trading up 4.7% at $17.10 in recent trading.

Today’s Volume: 835,000

Average Volume: 567,154

Volume % Change: 142%

Shares of ABMD are trending higher today after the company said revenue in its fiscal fourth quarter jumped 17% to $43.7 million, which was better than analysts had expected, due to more hospitals buying its heart devices.

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From a technical perspective, ABMD is gapping higher here right off its 50-day moving average at $16.33 with above-average volume. This move has briefly pushed shares of AMD back above its 200-day moving average at $17.66, but shares have now pulled back below that level.

 

Traders should now look for long-biased trades in ABMD as long as it’s trending above its 50-day at $16.33, and then once it sustains a move or close above its 200-day at $17.66 and above today’s high of $17.98 with volume that hits near or above 567,154 shares. If we get that move soon, then ABMD will set up to re-test or possibly take out its next major overhead resistance levels at $18.92 to $20.

Lululemon Athletica

Lululemon Athletica (LULU) is engaged in the design, manufacture and distribution of healthy lifestyle inspired athletic apparel, which is sold through a chain of corporate-owned and operated retail stores, independent franchises and a network of wholesale accounts. This stock is trading up 1.3% at $70.95 in recent trading.

Today’s Volume: 1.97 million

Average Volume: 2.71 million

Volume % Change: 50%

Shares of LULU are moving higher today after Barclays started coverage on the stock with an overweight rating.

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From a technical perspective, LULU is bouncing higher here right above some near-term support at $69 with decent upside volume. This stock has been uptrending strong for the last month, with shares soaring higher from its low of $61.60 to its recent high of $71.87. During that move, shares of LULU have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of LULU within range of triggering a major breakout trade. That trade will hit if LULU manages to take out some near-term overhead resistance levels at $71.87 to $73 with high volume.

Traders should now look for long-biased trades in LULU as long as it’s trending above today’s low of $69.69 or above that key near-term support at $69 and then once it sustains a move or close above those breakout levels with volume that hits near or above 2.71 million shares. If that breakout triggers soon, then LULU will set up to re-test or possibly take out its next major overhead resistance levels at $76 to $77.96.

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

-- Written by Roberto Pedone in Winderemere, Fla.

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

Roberto Pedone, based out of Windermere, Fla., 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.