Stock Quotes in this Article: CPRT, GOOG, IDCC, SUI, SVN

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.

 

Copart

Copart (CPRT) is a provider of online auctions and vehicle remarketing services in the U.S., Canada and the United Kingdom. This stock is trading up 2% at $27.95 in recent trading.

Today’s Volume: 937,000

Average Volume: 549,088

Volume % Change: 221%

Shares of CPRT are moving modestly higher here after the company reported a strong fourth quarter that topped Wall Street estimates. The company said it earned $44.9 million, or 35 cents per share, versus $40.5 million, or 29 cents per share, from the prior-year period.

From a technical perspective, CPRT is trending higher here with above-average volume, and it’s breaking out above some near-term overhead resistance at $28.23.

Traders should now look for long-biased trades in CPRT as long as its trending above today’s low of $27.89 with strong upside volume flows. I would consider any upside volume day that registers near or above 549,088 shares as bullish. If CPRT can maintain that trend, then this stock should be on its way to trading north of $30 a share in the near future.

InterDigital

InterDigital (IDCC) designs and develops advanced technologies, which enable wireless communications and monetizes such technologies through licensing and other revenue opportunities. This stock is trading up 6.2% at $35.04 in recent trading.

Today’s Volume: 959,000

Average Volume: 611,695

Volume % Change: 180%

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From a technical perspective, IDCC is gapping up strong here back above its 200-day moving average of $33.25 with above-average volume. This move is quickly pushing IDCC within range of triggering a major breakout trade. That trade will hit once IDCC manages to clear some near-term overhead resistance at $36.11 with high volume.

Traders should now look for long-biased trades in IDCC as long as it’s trending above today’s low of $34.22, and then once it sustains a move or close above $36.11 with volume that’s near or above 611,695 shares. If that breakout triggers soon, then IDCC will have a great chance to re-test or possibly take out its next major overhead resistance levels at $41 to $46.

Google

Google (GOOG) is a global technology company focused on improving the ways people connect with information. This stock is trading up 1% at $753.91 in recent trading.

Today’s Volume: 3.3 million

Average Volume: 2.4 million

Volume % Change: 109%

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From a technical perspective, GOOG is bouncing off some near-term support here at around $740 with above-average volume. This move is quickly pushing GOOG within range of triggering a near-term breakout trade. That trade will hit once GOOG manages to clear some near-term overhead resistance at $764.89 with high volume.

Traders should now look for long-biased trades in GOOG as long as it’s trending above today’s low of $741, and then once it sustains a move or close above $764.89 with volume that’s near or above 2.4 million shares. If that breakout triggers soon, then GOOG will enter new 52-week-high territory, which is bullish technical price action. That would give the stock a great chance to tag $800 or higher in the near future.

Google also shows up on a recent list of 10 Stock Picks of the Highest-Rated Money Mangers.

7 Days Group

7 Days Group (SVN) engages in the operation of hotels under the brand name 7 Days Inn in the People’s Republic of China. It provides accommodations and services to business and leisure travelers. This stock is trading up 8% at $11.42 in recent trading.

Today’s Volume: 501,000

Average Volume: 146,859

Volume % Change: 1021%

From a technical perspective, SVN is ripping higher here with monster volume. This move has now pushed SVN into breakout territory, since it has taken out some near-term overhead resistance levels at $10.83 to $11.17. This action is also quickly pushing SVN within range of another breakout trade. That trade will trigger once SVN manages to clear its 200-day moving average of $11.60 with high volume.

Traders should now look for long-biased trades in SVN once it manages to sustain a move or close above $11.60 with volume that’s near or above 146,859 shares. If that breakout triggers soon, then look for SVN to re-test or possibly take out its next major overhead resistance level at $13.46.

Sun Communities

Sun Communities (SUI) is a self-administered and self-managed real estate investment trust. The company leases individual parcels of land with utility access for placement of manufactured homes and recreational vehicles to its customers. This stock is trading up 1.8% at $44.74 in recent trading.

Today’s Volume: 175,000

Average Volume: 176,806

Volume % Change: 67%

From a technical perspective, SUI is bouncing higher here with above-average volume right off some near-term support at $44. This move is quickly pushing SUI within range of triggering a near-term breakout trade. That trade will hit once SUI manages to take out some near-term overhead resistance at $44.89 with high volume. At last check, SUI has hit an intraday high of $44.94 and volume is about to eclipse its three-month average action of 176,806 shares.

Traders should now look for long-biased trades in SUI as long as it’s trending above today’s low of $43.99, and then once it sustains a move or close above $44.89 with volume that’s near or above 176,806 shares. If that breakout triggers soon, then look for SUI to re-fill a previous gap back towards $46, or possibly even back to its 52-week high of $47.84.

On the flip side, I would avoid SUI or look for short-biased trades if it fails to trigger that breakout, and then drops below some key near-term support at $43.37 with high volume.

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.