Stock Quotes in this Article: FUEL, LPSN, WTW, TTS

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.

 

Tile Shop

 

Tile Shop (TTS) operates as a specialty retailer of manufactured and natural stone tiles, setting and maintenance materials, and related accessories in the U.S. This stock closed up 13.8% at $14.85 in Friday's trading session.

 

Friday's Volume: 3.57 million

Three-Month Average Volume: 903,203

Volume % Change: 376%

 

From a technical perspective, TTS gapped up sharply higher here and broke out above some near-term overhead resistance levels at $13.46 to $14.59 with monster upside volume. That move is starting to push shares of TTS within range of triggering another near-term breakout trade. That trade will hit if TTS manages to take out its 50-day moving average of $15.88 to Friday's high of $15.99 with high volume.

 

Traders should now look for long-biased trades in TTS as long as it's trending above Friday's low of $14.01 or above $13.46 and then once it sustains a move or close above those breakout levels with volume that's near or above 903,203 shares. If that breakout hits soon, then TTS will set up to re-test or possibly take out its next major overhead resistance levels at $18 to $18.67. Any high-volume move above those levels will then give TTS a chance to tag $20 to $22.

 

Weight Watchers

 

Weight Watchers (WTW) provides weight management services in North America, the United Kingdom, Continental Europe, Australia, New Zealand and internationally. This stock closed up 4.4% at $21.90 in Friday's trading session.

 

Friday's Volume: 2.35 million

Three-Month Average Volume: 1.25 million

Volume % Change: 110%

 

From a technical perspective, WTW bounced sharply higher here right off its recent low of $20.52 with above-average volume. This stock recently gapped down big from $31.40 to under $21 with monster downside volume. Following that gap down, shares of WTW went on to print a new low at $20.52. That move has pushed shares of WTW into oversold territory, since its current relative strength index reading is 31.21. Oversold can always get more oversold, but it's also an area where a stock can experience a powerful rebound higher from.

 

Traders should now look for long-biased trades in WTW as long as it's trending above Friday's low of $20.97 or above more near-term support at $20.52 and then once it sustains a move or close above Friday's high of $22 to its gap-down-day high at $23.18 with volume that's near or above 1.25 million shares. If we get that move soon, then WTW will set up to re-fill some of its recent gap-down-day zone that started at $31.40.

 

Rocket Fuel

 

Rocket Fuel (FUEL), a technology company, provides artificial-intelligence digital advertising solutions. This stock closed up 2.2% at $53.96 in Friday's trading session.

 

Friday's Volume: 1.84 million

Three-Month Average Volume: 475,334

Volume % Change: 195%

 

From a technical perspective, FUEL trended up modestly higher here and broke out above some near-term overhead resistance at $53.85 with strong upside volume. This move briefly pushed shares of FUEL back above its 50-day moving average of $56.61, before the stock closed back below that level at $53.96. Traders should now look for a continuation move higher in the short-term if FUEL manages to take out Friday's high of $57.50 to its recent gap-down-day high at $60.25 with high volume.

 

Traders should now look for long-biased trades in FUEL as long as it's trending above Friday's low of $53.26 and then once it sustains a move or close above $57.50 to $60.25 with volume that's near or above 475,334 shares. If we get that move soon, then FUEL will set up to re-fill some of its previous gap-down-day zone from January that started at $66.90.

 

LivePerson

 

LivePerson (LPSN), provides online engagement solutions that facilitate real-time assistance and expert advice in the U.S., Canada, Latin America, Europe and the Asia-Pacific region. This stock closed up 3.7% at $13.35 in Friday's trading session.

 

Friday's Volume: 570,000

Three-Month Average Volume: 349,769

Volume % Change: 75%

 

From a technical perspective, LPSN jumped higher here right above some near-term support at $12.50 with above-average volume. This move is quickly pushing shares of LPSN within range of triggering a near-term breakout trade. That trade will hit if LPSN manages to take out Friday's high of $13.55 to its 50-day moving average of $13.65 with high volume.

 

Traders should now look for long-biased trades in LPSN as long as it's trending above Friday's low of $12.87 or above $12.50 and then once it sustains a move or close above those breakout levels with volume that's near or above 349,769 shares. If that breakout triggers soon, then LPSN will set up to re-test or possibly take out its next major overhead resistance levels at $14.42 its 52-week high at $15.24. Any high-volume move above those levels will then give LPSN a chance to tag $16 to $17.

 

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.