Stock Quotes in this Article: MLNX, MOVE, CUDA

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 Hated Earnings Stocks You Should Love

 

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 Rocket Stocks to Buy for Summer Gains

 

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

 

Move

 

Move (MOVE) operates an online network of Web sites for real estate search, finance and moving and home enthusiasts in North America. This stock closed up 2.6% at $14.96 in Monday's trading session.

 

Monday's Volume: 879,000

Three-Month Average Volume: 649,437

Volume % Change: 50%

 

From a technical perspective, MOVE jumped notably higher here right above its 200-day moving average of $14.05 with above-average volume. This spike higher on Monday is starting to push shares of MOVE within range of triggering a major breakout trade. That trade will hit if MOVE manages to take out some key near-term overhead resistance levels at Monday's intraday high of $15.07 to $15.46 with high volume.

 

Traders should now look for long-biased trades in MOVE as long as it's trending above its 200-day at $14.05 or above more near-term support at $13.50 and then once it sustains a move or close above those breakout levels with volume that's near or above 649,437 shares. If that breakout triggers soon, then MOVE will set up to re-test or possibly take out its next major overhead resistance levels at $17 to $18, or even its 52-week high at $18.36.

 

Mellanox Technologies

 

Mellanox Technologies (MLNX), a fabless semiconductor company, designs, manufactures and sells interconnect products and solutions. This stock closed up 6.1% at $36.67 in Monday's trading session.

 

Monday's Volume: 751,000

Three-Month Average Volume: 479,653

Volume % Change: 65%

 

From a technical perspective, MLNX ripped sharply higher here right above its 50-day moving average of $33.57 with above-average volume. This big spike to the upside on Monday is quickly pushing shares of MLNX within range of triggering a near-term breakout trade. That trade will hit if MLNX manages to take out its 200-day moving average of $37.06 to some more near-term overhead resistance at $38.03 with high volume.

 

Traders should now look for long-biased trades in MLNX as long as it's trending above Monday's intraday low of $34.60 or above some more near-term support at $33.33 and then once it sustains a move or close above those breakout levels with volume that's near or above 479,653 shares. If that breakout begins soon, then MLNX will set up to re-test or possibly take out its next major overhead resistance levels at $40.80 to $44.14.

 

Barracuda Networks

 

Barracuda Networks (CUDA) designs and delivers security and storage solutions. This stock closed up 2% to $34.56 in Monday's trading session.

 

Monday's Volume: 298,000

Three-Month Average Volume: 185,126

Volume % Change: 72%

 

From a technical perspective, CUDA jumped notably higher here with above-average volume. This move higher on Monday is starting to push shares of CUDA within range of triggering a major breakout trade. That trade will hit if CUDA manages to take out some key overhead resistance levels at $35.15 to $35.59 and then once it clears $36.46 with high volume.

 

Traders should now look for long-biased trades in CUDA as long as it's trending above some key near-term support at $32 and then once it sustains a move or close above those breakout levels with volume that hits near or above 185,126 shares. If that breakout triggers soon, then CUDA will set up to re-test or possibly take out its next major overhead resistance levels at $42 to its all-time high at $44.40.

 

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.