Stock Quotes in this Article: MTW, THRM, ESPR, CMCM

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.

Gentherm

Gentherm (THRM) designs, develops and manufactures thermal management technologies and cable systems worldwide. This stock closed up 5.3% at $44.10 in Friday's trading session.

Friday's Volume: 1.43 million

Three-Month Average Volume: 643,726

Volume % Change: 134%

From a technical perspective, THRM spiked sharply higher here right above some near-term support at $41.31 and back above its 50-day moving average of $44.04 with above-average volume. This stock has been uptrending strong for the last six months, with shares moving higher from its low of $22.84 to its recent high of $49.23. During that uptrend, shares of THRM have been making mostly higher lows and higher highs, which is bullish technical price action. Market players should now look for a continuation move to the upside in the near-term if THRM manages to take out Friday's intraday high of $44.80 to around $45.50 with high volume.

Traders should now look for long-biased trades in THRM as long as it's trending above Friday's intraday low of $42.06 or above more near-term support at $41.31 and then once it sustains a move or close above $44.80 to $45.50 with volume that hits near or above 643,726 shares. If that move kicks off soon, then THRM will set up to re-test or possibly take out its next major overhead resistance levels at $48 to its 52-week high at $49.23.

Cheetah Mobile

Cheetah Mobile (CMCM) operates a platform that offer mission critical applications for its users and global content distribution channels for its business partners in the People's Republic of China. This stock closed up 7.8% at $20.66 in Friday's trading session.

Friday's Volume: 1.25 million

Three-Month Average Volume: 828,002

Volume % Change: 65%

From a technical perspective, CMCM ripped sharply higher here back above its 50-day moving average of $19.76 with above-average volume. This stock recently formed a double bottom chart pattern at $18.26 to $18.03. Following that bottom, shares of CMCM have started to spike higher and it's now quickly moving within range of triggering a near-term breakout trade. That trade will hit if CMCM manages to take out some key near-term overhead resistance levels at $21.50 to $21.68 with high volume.

Traders should now look for long-biased trades in CMCM as long as it's trending above Friday's intraday low of $19.10 or above some more near-term support at $18.03 and then once it sustains a move or close above those breakout levels with volume that's near or above 828,002 shares. If that breakout materializes soon, then CMCM will set up to re-test or possibly take out its next major overhead resistance levels at $23.62 to its all-time high at $25.

Esperion Therapeutics

Esperion Therapeutics (ESPR), a clinical stage biopharmaceutical company, focuses on the research, development and commercialization of oral, low-density lipoprotein cholesterol lowering therapies for the treatment of patients with hypercholesterolemia and other cardiometabolic risk markers. This stock closed up 9.7% at $15.73 in Friday's trading session.

Friday's Volume: 45,000

Three-Month Average Volume: 26,097

Volume % Change: 90%

From a technical perspective, ESPR exploded higher here and broke out above some near-term overhead resistance at $15.28 with above-average volume. This large move to the upside in Friday is quickly pushing shares of ESPR within range of triggering another big breakout trade. That trade will hit if ESPR manages to take out some key near-term overhead resistance levels at $15.97 to $16.32 with high volume.

Traders should now look for long-biased trades in ESPR as long as it's trending above its 50-day at $14.94 or its 200-day at $14.69 or above Friday's intraday low of $14.23 and then once it sustains a move or close above those breakout levels with volume that's near or above 26,097 shares. If that breakout begins soon, then ESPR will set up to re-test or possibly take out its next major overhead resistance levels at $17 to $18, or even $18.33 to $19.55.

Manitowoc Company

Manitowoc Company (MTW) designs, manufactures and sells cranes and related products, and foodservice equipment worldwide. This stock closed up 1.8% at $27.04 in Friday's trading session.

Friday's Volume: 4.43 million

Three-Month Average Volume: 2.30 million

Volume % Change: 95%

From a technical perspective, MTW spiked modestly higher here right above some near-term support at $25.76 and back above its 200-day moving average of $27.55 with above-average volume. This stock recently gapped down sharply lower from around 431 to $25.76 with monster downside volume. Following that move, shares of MTW have started to rebound and enter that gap-down-day zone with strong upside volume. Market players should now look for a continuation move to the upside in the short-term if MTW manages to clear Friday's intraday high of $27.55 with high volume.

Traders should now look for long-biased trades in MTW as long as it's trending above Friday's intraday low of $26.40 or above its recent low of $25.76 and then once it sustains a move or close above $27.55 with volume that's near or above 2.30 million shares. If that move gets underway soon, then MTW will set up to re-fill some more of its recent gap-down-day zone that started near $31.

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.