Stock Quotes in this Article: PCAR, USM, KANG

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.

 

Paccar

 

Paccar (PCAR), together with its subsidiaries, designs, manufactures and distributes light-, medium- and heavy-duty trucks and related aftermarket parts worldwide. This stock closed up 5.4% at $67.25 in Thursday's trading session.

 

Thursday's Volume: 3.70 million

Three-Month Average Volume: 1.74 million

Volume % Change: 255%

 

From a technical perspective, PCAR gapped up sharply higher here right above its 50-day moving average with heavy upside volume flows. This gap to the upside on Thursday pushed shares of PCAR into breakout territory, since the stock took out some key near-term overhead resistance levels at $65.59 to $66.65 and above $66.82. Shares of PCAR are now starting to move within range of triggering another big breakout trade. That trade will hit if PCAR manages to take out Thursday's intraday high of $67.64 and then once it clears $68.13 to its 52-week high at $68.81 with high volume.

 

Traders should now look for long-biased trades in PCAR as long as it's trending above Thursday's intraday low of $66.51 or above $65.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.74 million shares. If that breakout gets started soon, then PCAR will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $75 to $80.

 

United States Cellular

 

United States Cellular (USM) operates as a wireless telecommunications service provider in the U.S. This stock closed up 2.2% to $41.97 in Thursday's trading session.

 

Thursday's Volume: 165,000

Three-Month Average Volume: 99,829

Volume % Change: 128%

 

From a technical perspective, USM jumped higher here right above its 50-day moving average of $40.96 with above-average volume. This stock has been uptrending a bit for the last few weeks, with shares moving higher from its low of $38.33 to its intraday high of $42. During that uptrend, shares of USM have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now started to push shares of USM within range of triggering a big breakout trade. That trade will hit if USM manages to take out its 200-day moving average of $42.38 and then once it clears more key overhead resistance levels at $43.20 to $43.50 with high volume.

 

Traders should now look for long-biased trades in USM as long as it's trending above its 50-day at $40.96 or above more support at $40 and then once it sustains a move or close above those breakout levels with volume that hits near or above 99,829 shares. If that breakout materializes soon, then USM will set up to re-test or possibly take out its next major overhead resistance levels at $45 to $47, or even its 52-week high at $48.98.

 

iKang Healthcare Group

 

iKang Healthcare Group (KANG), together with its subsidiaries, provides preventive health care solutions in the People's Republic of China. This stock closed up 3.9% at $19.34 in Thursday's trading session.

 

Thursday's Volume: 385,000

Three-Month Average Volume: 299,000

Volume % Change: 157%

 

From a technical perspective, KANG jumped sharply higher here and broke out into new all-time-high territory with above-average volume. This stock has been uptrending for the last few weeks, with shares moving higher from its low of $16.80 to its new all-time high of $19.77. During that move, shares of KANG have been consistently making higher lows and higher highs, which is bullish technical price action. Market players should now look for a continuation move to the upside for shares of KANG if it manages to take out Thursday's intraday high of $19.77 with high volume.

 

Traders should now look for long-biased trades in KANG as long as it's trending above $18.50 or above $18 and then once it sustains a move or close above $19.77 with volume that this near or above 299,000 shares. If that move gets underway soon, then KANG will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that action are $25 to $27.

 

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.