Stock Quotes in this Article: GEO, SRI, DNKN, MTDR

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 Stocks Ready to Break Out

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 Hated Earnings Stocks You Should Love

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

Matador Resources

Matador Resources (MTDR) is an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas resources in the U.S. This stock closed up 4.8% to $18.10 in Monday's trading session.

Monday's Volume: 1.39 million

Three-Month Average Volume: 708,697

Volume % Change: 109%

>>5 Stocks Under $10 Set to Soar

From a technical perspective, MTDR ripped higher here and broke out above some near-term overhead resistance levels at $17.41 to $17.89 with above-average volume. This move also pushed shares of MTDR into new all-time-high territory, which is bullish technical price action. That means there's no resistance above on shares of MTDR, since the stock is trading in uncharted territory.

Traders should now look for long-biased trades in MTDR as long as it's trending above its 50-day at $16.43 and then once it sustains a move or close above its new all-time high at $18.25 with volume that hits near or above 708,697 shares. If we get that move soon, then MTDR will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that move are $23 to $25.

Dunkin Brands Group

Dunkin Brands Group (DNKN) is a franchisor of quick service restaurants serving hot and cold coffee and baked goods, as well as hard-serve ice cream. This stock closed up 1.7% at $46.47 in Monday's trading session.

Monday's Volume: 1.46 million

Three-Month Average Volume: 871,508

Volume % Change: 87%

>>5 Big Stocks to Trade for Big Gains

From a technical perspective, DNKN rose modestly higher here and broke out above some near-term overhead resistance at $46.50 with above-average volume. This move also pushed shares of DNKN into new all-time high territory, which is bullish technical price action. Whenever a stock makes a new all-time high, then it means that everyone who has ever gone long is making money. That's good company to be in, since it means a stock has no overhead sellers that are stuck from higher prices to contend with.

Traders should now look for long-biased trades in DNKN as long as it's trending above its 50-day at $44.14 and then once it sustains a move or close above its new all-time high at $46.96 with volume that hits near or above 871,508 shares. If we get that move soon, then DNKN will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that move are $52 to $55.

Stoneridge

Stoneridge (SRI) is a designer and manufacturer of highly engineered electrical and electronic components, modules and systems for the commercial vehicle, automotive, agricultural, motorcycle and off-highway vehicle markets. This stock closed up 0.82% at $12.36 in Monday's trading session.

Monday's Volume: 294,000

Three-Month Average Volume: 188,372

Volume % Change: 145%

>>5 Stocks Hedge Funds Love This Fall

From a technical perspective, SRI jumped modestly higher here back above its 50-day moving average of $12.16 with above-average volume. This stock has been uptrending for the last few weeks, with shares moving higher from its low of $10.75 to its intraday high of $12.42. During that move, shares of SRI have been consistently making higher lows and higher highs, which is bullish technical price action. This uptrend is coming after shares of SRI dropped from its August high of $13.63 to that $10.75 low.

Traders should now look for long-biased trades in SRI as long as it's trending above $11.50, and then once it sustains a move or close above Monday's high of $12.42 with volume that's near or above 188,372 shares. If we get that move soon, then SRI will set up to re-test or possibly take out its next major overhead resistance levels at $13.38 to its 52-week high at $13.63. Any high-volume move above those levels will then give SRI a chance to tag $15 to $16.

Geo Group

Geo Group (GEO) specializes in the ownership, leasing and management of correctional, detention and re-entry facilities, and the provision of community based services and youth services in the U.S., Australia, South Africa and the U.K. This stock closed up 0.72% at $33.35 in Monday's trading session.

Monday's Volume: 1.65 million

Three-Month Average Volume: 632,598

Volume % Change: 125%

>>5 Rocket Stocks to Buy This Earnings Season

From a technical perspective, GEO jumped higher here right off its 50-day moving average of $32.71 with above-average volume. This stock has been uptrending strong for the last month and change, with shares moving higher from its low of $30.11 to its recent high of $34.10. During that move, shares of GEO have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of GEO within range of triggering a big breakout trade. That trade will hit if GEO manages to take out some near-term overhead resistance levels at $34 to $34.44 with high volume.

Traders should now look for long-biased trades in GEO as long as it's trending above its 50-day at $32.71 or above more support at $31.50 and then once it sustains a move or close above those breakout levels with volume that's near or above 632,598 shares. If that breakout trigger soon, then GEO will set up to re-test or possibly take out its next major overhead resistance levels $38 to $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.