Stock Quotes in this Article: ARMH, FUN, LEN, TUES

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 today.

Cedar Fair

Cedar Fair (FUN), a regional amusement park operator, owns 11 amusement parks, six outdoor water parks, one indoor water park and five hotels. This stock closed up 1.1% to $48.60 in Wednesday's trading session.

Wednesday's Volume: 557,000

Three-Month Average Volume: 135,975

Volume % Change: 317%

From a technical perspective, FUN trended modestly higher here right off some near-term support at $48 with strong upside volume. This move is quickly pushing shares of FUN within range of triggering a major breakout trade. That trade will hit if FUN manages to take out some near-term overhead resistance levels at $49.35 to $49.45, and then once it clears its 52-week high at $50.16 with high volume.

Traders should now look for long-biased trades in FUN as long as it's trending above $47 or above more near-term support at $46.37 and then once it sustains a move or close above those breakout levels with volume that hits near or above 135,975 shares. If that breakout hits soon, then FUN will set up to enter new 52-week-high territory above $50.16, which is bullish technical price action. Some possible upside targets off that breakout are $55 to $57.

Tuesday Morning

Tuesday Morning (TUES) operates as a closeout retailer of upscale decorative home accessories, housewares, seasonal goods and famous-maker gifts in the U.S. This stock closed up 4.4% at $15.28 in Wednesday's trading session.

Wednesday's Volume: 749,000

Three-Month Average Volume: 470,336

Volume % Change: 95%

From a technical perspective, TUES ripped sharply higher here right above some near-term support at $14.46 with above-average volume. This stock has been uptrending strong for the last month and change, with shares moving higher from its low of $11.53 to its recent high of $15.75. During that uptrend, shares of TUES have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of TUES within range of triggering a near-term breakout trade. That trade will hit if TUES manages to take out Wednesday's high of $15.51 to its 52-week high at $15.75 with high volume.

Traders should now look for long-biased trades in TUES as long as it's trending above some key near-term support at $14.46 or above its 50-day at $13.83 and then once it sustains a move or close above those breakout levels with volume that's near or above 470,336 shares. If that breakout hits soon, then TUES will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $18 to $20.

ARM Holdings

ARM Holdings (ARMH) designs microprocessors, physical IP and related technology and software, and sells development tools to enhance the performance, cost-effectiveness and energy-efficiency of high-volume embedded applications. This stock closed up 6.2% at $51.91 in Wednesday's trading session.

Wednesday's Volume: 2.29 million

Three-Month Average Volume: 1.61 million

Volume % Change: 125%

From a technical perspective, ARMH gapped sharply higher here and broke out above some near-term overhead resistance at $50.41 with above-average volume. This move is quickly pushing shares of ARMH within range of triggering an even bigger breakout trade. That trade will hit if ARMH manages to take out Wednesday's high of $52 to its 52-week high at $52.38 with high volume.

Traders should now look for long-biased trades in ARMH as long as it's trending above Wednesday's low of $49.78 and then once it sustains a move or close above those breakout levels with volume that's near or above 1.61 million shares. If that breakout hits soon, then ARMH will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $55 to $57.

Lennar

Lennar (LEN), together with its subsidiaries, engages in homebuilding, financial services and real estate businesses in the U.S. This stock closed up 6.3% at $37.43 in Wednesday's trading session.

Wednesday's Volume: 14.18 million

Three-Month Average Volume: 5.23 million

Volume % Change: 167%

From a technical perspective, LEN gapped sharply higher here back above its 200-day moving average of $36.74 with monster upside volume. This move is quickly pushing shares of LEN within range of triggering a major breakout trade. That trade will hit if LEN manages to take out some key overhead resistance at $37.79 with high volume.

Traders should now look for long-biased trades in LEN as long as it's trending above its 200-day at $36.74 or above $36 and then once it sustains a move or close above resistance at $37.79 with volume that's near or above 5.23 million shares. If that breakout hits soon, then LEN will set up to re-test or possibly take out its next major overhead resistance levels at $40 to its 52-week high at $44.40.

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.


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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.