Stock Quotes in this Article: DV, ILMN, LAYN, LUX, NSM

WINDERMERE, Fla. (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.

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by “superinvestors.”

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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.

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

 

Nationstar Mortgage

Nationstar Mortgage (NSM) is a non-bank residential mortgage servicer with a range of services across the residential mortgage product spectrum. This stock is trading up 7.5% at $35.68 in recent trading.

Today’s Volume: 1.8 million

Average Volume: 912,438

Volume % Change: 319%

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From a technical perspective, NSM is ripping to the upside here with monster volume. This move is quickly pushing NSM within range of triggering a breakout trade. That trade will hit once NSM manages to clear some near-term overhead resistance at $34.90 with high volume.

Traders should now look for long-biased trades in NSM as long as it’s trending above $31.60, and then once it sustains a move or close above $34.90 with volume that’s near or above 912,438 shares. If that breakout triggers soon, then look for NSM to possible hit $40 in the near future.

Illumina

Illumina (ILMN) is a developer and manufacturer of life science tools and integrated systems for the analysis of genetic variation and function. This stock is trading up 2.4% at $49.35 in recent trading.

Today’s Volume: 1.7 million

Average Volume: 1.2 million

Volume % Change: 154%

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From a technical perspective, ILMN is bouncing higher here right off some near-term support at $48 with above-average volume. This move has started to push ILMN into breakout territory, since the stock is flirting with some near-term overhead resistance at $49.27. At last check, ILMN has hit an intraday high of $50.08 and volume is well above its three-month average action of 1.2 million shares.

Trades should now look for long-biased trades in ILMN as long as its trending above today’s low of $48.20 with strong upside volume flows. I would consider any upside volume day that registers near or above 1.2 million shares as bullish. IF ILMN can maintain that trend, and especially its trend above $49.27, then this stock has a great chance of re-testing or possibly taking out its next significant overhead resistance levels at $52.50 to $55.

Luxottica Group

Luxottica Group (LUX) is an Italy-based company engaged in the design, manufacturing and distribution of prescription frames, sports eyewear and sunglasses. This stock is trading up 3.2% at $36.42 in recent trading.

Today’s Volume: 92,000

Average Volume: 71,992

Volume % Change: 166%

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From a technical perspective, LUX is continuing to bounce higher here off its 50-day moving average at $35.44 with above-average volume. This move is quickly pushing LUX within range of triggering a near-term breakout trade. That trade will hit once LUX manages to clear some near-term overhead resistance at $36.59 with high volume.

Traders should now look for long-biased trades in LUX as long as it’s trending above its 50-day at $35.44, and then once it sustains a move or close above $36.59 with volume that’s near or above 71,992 shares. If that breakout triggers soon, then look for LUX to re-test or possibly take out its next significant overhead resistance levels at $37.39.

DeVry

DeVry (DV), together with its subsidiaries, provides educational services worldwide. This stock is trading up 8.4% at $24.69 in recent trading.

Today’s Volume: 2.2 million

Average Volume: 1.7 million

Volume % Change: 162%

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From a technical perspective, DV is soaring here with above-average volume, and it’s moved into breakout territory since it’s taken out some near-term overhead resistance at $23.54.

Traders should now look for long-biased trades in DV as long as it’s trending above $23.54 with strong upside volume flows. I would consider any upside volume day that registers near or above its three-month average action of 1.7 million shares as bullish. If DV can maintain that trend, then look for this stock to continue to fill is previous gap from July that started at around $27.

Layne Christensen

Layne Christensen (LAYN) is a global water management, construction and drilling company. The company provides solutions for water, mineral and energy challenges. This stock is trading up 8.6% at $21.09 in recent trading.

Today’s Volume: 266,000

Average Volume: 170,069

Volume % Change: 163%

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From a technical perspective, LAYN is ripping higher here back above its 50-day moving average of $20.31 with above-average volume. This move is quickly pushing LAYN within range of triggering a major breakout trade. That trade will hit once LAYN manages to clear its 200-day at $21.72, and then once it takes out some more overhead resistance at $22.48 with high volume.

Traders should now look for long-biased trades in LAYN as long as it’s trending above its 50-day at $20.31, and then once it sustains a move or close above those breakout levels with volume that’s near or above 170,069 shares. If that breakout triggers soon, then look for LAYN to re-test or possibly take out its next major overhead resistance levels at $22.48 to $23.03, or possibly even $24.50.

To see more stocks rising on unusual volume, check out the Stocks Rising On Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Winderemere, Fla.


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At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.