Stock Quotes in this Article: EBIX, MYL, SHLO, UBNT


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.

Ubiquiti Networks

Ubiquiti Networks (UBNT), together with its subsidiaries, offers a portfolio of networking products and solutions for service providers and enterprises. This stock closed up 1.1% at $52.71 in Friday's trading session.

Friday's Volume: 2.19 million

Three-Month Average Volume: 1.25 million

Volume % Change: 85%

From a technical perspective, UBNT spiked modestly higher here right above some near-term support at $48 with above-average volume. This spike on Friday is quickly pushing shares of UBNT within range of triggering a major breakout trade. That trade will hit if UBNT manages to take out Friday's high of $52.91 to its all-time high of $54.91 with high volume.

Traders should now look for long-biased trades in UBNT as long as it's trending above support at $48 or above its 50-day at $46.04 and then once it sustains a move or close above those breakout levels with volume that this near or above 1.25 million shares. If that breakout kicks off soon, then UBNT will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $60 to $65.

Shiloh Industries

Shiloh Industries (SHLO), together with its subsidiaries, provides light weighting, as well as noise, vibration and harshness solutions to automotive, commercial vehicle and other industrial markets. This stock closed up 5.7% at $18.12 in Friday's trading session.

Friday's Volume: 375,000

Three-Month Average Volume: 127,003

Volume % Change: 218%

From a technical perspective, SHLO trended sharply higher here right off its 50-day moving average of $16.89 with strong upside volume. This move is starting to push shares of SHLO within range of triggering a major breakout trade. That trade will hit if SHLO manages to take out Friday's high of $18.40 to some more key overhead resistance at $19.90 with high volume.

Traders should now look for long-biased trades in SHLO as long as it's trending above its 50-day moving average of $16.89 or above more support at $16 and then once it sustains a move or close above those breakout levels with volume that hits near or above 127,003 shares. If that breakout starts soon, then SHLO will set up to re-test or possibly take out its next major overhead resistance levels at $23 to its 52-week high at $25.34.

Ebix

Ebix (EBIX) provides software and e-commerce solutions to the insurance industry. This stock closed up 4.3% at $16.99 in Friday's trading session.

Friday's Volume: 1.45 million

Three-Month Average Volume: 442,725

Volume % Change: 240%

From a technical perspective, EBIX ripped higher here right above some near-term support at $15 with above-average volume. This stock has been trending sideways and consolidating for the last month, with shares moving between $14 on the downside and $17.64 on the upside. This spike higher on Friday is quickly pushing shares of EBIX within range of triggering a big breakout trade above the upper-end of its recent sideways trading chart pattern. That trade will hit if EBIX manages to take out Friday's high of $17.40 to more resistance at $17.64 with high volume.

Traders should now look for long-biased trades in EBIX as long as it's trending above Friday's low of $15.81 or above its 50-day moving average at $15 and then once it sustains a move or close above those breakout levels with volume that's near or above 442,725 shares. If that breakout hits soon, then EBIX will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $21.25.

Mylan

Mylan (MYL), a pharmaceutical company, develops, licenses, manufactures, markets and distributes generic, branded generic and specialty pharmaceuticals worldwide. This stock closed up 1.1% at $52.63 in Friday's trading session.

Friday's Volume: 7.39 million

Three-Month Average Volume: 4.16 million

Volume % Change: 164%

From a technical perspective, MYL trended modestly higher here with above-average volume. This stock has been downtrending over the last few weeks, with shares moving lower from its high of $57.52 to its intraday low of $51.86. During that move, shares of MYL have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of MYL have filled its previous gap from late February on this pullback and now strong volume is moving into the stock and pushing it within range of triggering a near-term breakout trade. That trade will hit if MYL manages to take out some near-term overhead resistance levels at $54 to $55 with high volume.

Traders should now look for long-biased trades in MYL as long as it's trending above Friday's low of $51.86 or above $50 and then once it sustains a move or close above those breakout levels with volume that's near or above 4.16 million shares. If that breakout triggers soon, then MYL will set up to re-test or possibly take out its 52-week high at $57.52.

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.