Stock Quotes in this Article: CAT, CHL, OPEN, EGL

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.

 

OpenTable

OpenTable (OPEN) provides solutions that form an online network connecting reservation-taking restaurants and people who dine at those restaurants. This stock is trading up 3% at $44.97 in recent trading.

Today’s Volume: 928,000

Average Volume: 693,851

Volume % Change: 122%

Shares of OPEN are rallying after Reuters reported that Yahoo! (YHOO) executives had shown interest in buying the company.

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From a technical perspective, OPEN is bouncing modestly higher here back above its 50-day moving average of $44.45 with above-average volume. This move is quickly pushing OPEN within range of triggering a near-term breakout trade. That trade will hit once OPEN manages to take out some near-term overhead resistance levels at $46.16 to $46.52 with high volume.

Traders should now look for long-biased trades in OPEN as long as it’s trending above $43.54, and then once it sustains a move or close above those breakout levels with volume that hits near or above 693,851 shares. If that breakout triggers soon, then look for OPEN to re-test or possibly take out its next major overhead resistance levels at $50.29 to $52.64.

China Mobile

China Mobile (CHL) provides a range of mobile telecommunications services in all 31 provinces, autonomous regions and directly-administered municipalities in Mainland China as well as in Hong Kong. This stock is trading up 2.8% at $55.61 in recent trading.

Today’s Volume: 893,000

Average Volume: 778,417

Volume % Change: 104%

From a technical perspective, CHL is bouncing to the upside here right off its 50-day moving average of $54.11 with above-average volume. This move is quickly pushing CHL within range of triggering a near-term breakout trade. That trade will hit once CHL manages to take out some near-term overhead resistance at $55.97 with high volume.

Traders should now look for long-biased trades in CHL as long as its trending above its 50-day, and then once it sustains a move or close above $55.97 with volume that hits near or above 778,417 shares. If that breakout triggers soon, then look for CHL to re-test or possibly take out its next major overhead resistance level at $58.40.

Caterpillar

Caterpillar (CAT) provides construction and mining equipment, diesel and natural gas engines and industrial gas turbines. It also provides financing alternatives to its customers. This stock is trading up 1.2% at $84.91 in recent trading.

Today’s Volume: 12.3 million

Average Volume: 7.5 million

Volume % Change: 185%

Shares of CAT moving notably higher here after the company reported better-than-expected results for the third quarter, but tempered forecasts for the full year and predicted ongoing difficulty in Europe

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From a technical perspective, CAT is bouncing higher here right around some near-term support at $81.61 with monster volume. This move is quickly pushing CAT within range of triggering a near-term breakout trade. That trade will hit once CAT manages to take out some near-term overhead resistance at $87.53 with high volume.

Traders should now look for long-biased trades in CAT once it manages to sustain a move or close above $87.53 with volume that hits near or above 7,501,150 shares. If that breakout triggers soon, then look for CAT to re-test or possibly take out its next major overhead resistance levels at $93.71 to $94.95.

Engility

Engility (EGL) is a provider of systems engineering services, training, program management and operational support for the U.S. government worldwide. This stock is trading up 1.3% at $18.63 in recent trading.

Today’s Volume: 271,000

Average Volume: 287,162

Volume % Change: 90%

From a technical perspective, EGL is bouncing modestly higher here right off its 50-day moving average of $18.08 with decent volume. This move is quickly pushing EGL within range of triggering a near-term breakout trade. That trade will hit once EGL manages to take out some near-term overhead resistance at $20 with high volume.

Traders should now look for long-biased trades in EGL as long as it’s trending above its 50-day at $18.08, and then once it sustains a move or close above $20 with volume that hits near or above 287,162 shares. If that breakout triggers soon, then EGL will setup to re-test or possibly take out its all-time high at $22.50.

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 stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.