Stock Quotes in this Article: CMTL, LMNX, MPWR, ONXX, SGEN

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. Many times 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 "super investors" buying or selling.

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.

 

Amsurg AMSG

This company is engaged in developing, acquiring and operating ambulatory surgery centers in partnership with physicians throughout the United States. This stock is up 2.7% at $28.73 in recent trading.

Today's Volume: 338,000
Average Volume: 137,855
Volume % Change: 255%

From a technical perspective, AMSG is spiking back above its 50-day moving average of $27.79 here, on above-average volume. This move is pushing the stock within range of triggering a near-term breakout trade. That trade will hit once AMSG takes out some near-term overhead resistance at $29.03 to $29.78 with high volume.

Traders should look for long-biased trades off a sustained move or close above those levels with volume that's near or above 137,855 shares. If we get that action soon, then AMSG should have no problem with trading north of $30.

Omeros OMER

This is a clinical-stage biopharmaceutical company. It is engaged in discovering, developing and commercializing products focused on inflammation, bleeding and disorders of the central nervous system. This stock is trading up 9% at $11.48.

Today's Volume: 187,000
Average Volume: 151,419
Volume % Change: 144%

From a technical perspective, OMER is ripping higher here on above-average volume, and the stock has started to trigger a major breakout trade above some past overhead resistance at $10.88. This move has now pushed OMER into new 52-week high territory. Traders should continue to look for long-biased trades as long as OMER is trending above $10.88 with strong upside volume flows.

I would consider any upside volume day that registers near or above 151,419 as bullish. If we continue to see that action, then OMER has a great chance of hitting $15 in the near future. On the flipside, I would avoid any long trades if OMER cannot hold its trend over $10.88 with strong volume flows.

Onyx Pharmaceuticals ONXX

This is a clinical-stage biopharmaceutical company. It is engaged in discovering, developing and commercializing products focused on inflammation, bleeding and disorders of the central nervous system. This stock is trading up 7.8% at $46.97.

Today's Volume: 1,821,000
Average Volume: 1,121,300
Volume % Change: 86%

Shares of ONXX are soaring today after Bank of America BAC upgraded the stock from neutral to buy and increased its price target from $47 to $57.

From a technical perspective, ONXX is skyrocketing here on above-average volume. This move is quickly pushing the stock within range of triggering a major breakout trade. That trade will hit once ONXX takes out some near-term overhead resistance at $47.41 to $47.80 with high-volume.

Traders should now look for long-biased trades, if ONXX can sustain a move or close above those levels with volume that's near or above 1,121,300 shares. If we get that action soon, then look for ONXX to easily trade north of $50. On the flipside, if ONXX fails to take those levels out, it could become a short candidate, since those levels have acted as tough resistance for a few months.

Monolithic Power Systems MPWR

This is a fabless semiconductor company that designs, develops and markets analog and mixed-signal semiconductors. This stock is up 8.7% at $19.72 in recent trading.

Today's Volume: 626,000
Average Volume: 322,328
Volume % Change: 129%

Shares of MPWR are surging today after Stifel Nicolaus raised its rating to buy from hold, citing the company's "renewed focus on higher-value products, end-market diversification and attractive financial model," with solid free cash-flow generation.

From a technical perspective, MPWR is ripping higher here on monster volume, and the stock is flirting with its 50-day moving average of $19.66. At last check, MPWR has hit an intraday high of $19.84 and volume is well above its three-month average action.

Traders should now look for long-biased trades as long as MPWR can keep a trend over its 50-day with strong upside volume flows. I would consider any upside volume day that registers near or above 322,238 shares as bullish. If we continue to see that trend, then MPWR could easily retest its 52-weeek high of $22.40, in the near future. On the flipside, I would avoid this stock, or look for short-biased trades, if it fails to hold that trend above the 50-day, and then takes out some near-term support at $17.70 with heavy volume.

Seattle Genetics SGEN

This is a biotechnology company focused on the development and commercialization of monoclonal antibody-based therapies for cancer. This stock is up 4% at $23.35 in recent trading.

Today's Volume: 2,705,000
Average Volume: 1,207,540
Volume % Change: 181%

Shares of SGEN are ripping higher today after Needham & Company reiterated its buy rating on the stock and raised its price target from $20 to $25.

From a technical perspective, SGEN is ripping to the upside here on monster volume. This move marks a continuation pattern for the stock after it broke out above $21.99 to $22.40 a few days ago with strong volume. As long as SGEN can maintain its trend above $21.99 to $22.40 with strong upside volume flows, this stock could possibly hit $25 to $27 soon.

Traders should consider any upside volume day that registers near or above 1,207,540 shares as bullish. Look for long-biased trades as long as it holds those breakout levels with volume.

On the flipside, I would avoid SGEN, or look for short-biased trades, if it moves back below $22 to $21 with heavy volume. If we get that action, look for SGEN to simply retest its 50-day at $19.84, or its 200-day at $18.69.

Comtech Telecomm CMTL

This company designs, develops, produces and markets products, systems and services for communications solutions. This stock is trading up 6% at $30.90 in recent trading.

Today's Volume: 415,000
Average Volume: 177,134
Volume % Change: 224%

From a technical perspective, CMTL is soaring here on monster volume back above both its 50-day moving average of $30.75 and its 200-day moving average of $30.50. This move is pushing CMTL within range of triggering a near-term breakout trade. That trade will hit once CMTL takes out some near-term overhead resistance at $31.89 with high-volume.

Traders should now look for long-biased trades as long as CMTL is holding its trend above its 50-day at $30.75, and then takes out $31.89 with high volume. Look for a sustained move or close above those levels with volume that's near or above 177,134 shares. If we get that action soon, CMTL could easily trend back toward its April high of $34.59.

On the flipside, I would avoid this stock, or look for short-biased trades, if it were to close back below both its 50-day and 200-day with heavy volume.

Luminex LMNX

This company develops, manufactures and sells biological testing technologies and products with applications throughout the life sciences and diagnostics industries. This stock is up 7.8% at $23.23 in recent trading.

Today's Volume: 622,000
Average Volume: 227,414
Volume % Change: 210%

From a technical perspective, LMNX is soaring here with monster volume, and the stock has started to flirt with its 50-day moving average of $23.36. At last check, LMNX has hit an intraday high of $23.44 and volume is well above its three-month average action of 227,414 shares. Traders should continue looking for long-biased trades, as long as LMNX is trending above its 50-day, and if it can manage to take out some near-term overhead resistance at $24.05 with high-volume.

Look for a sustained move or close above those levels with volume that's near or above 227,414 shares. If we get that action soon, look for LMNX to revisit and possibly take out its April high of $25.16.

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

-- Written by Roberto Pedone in Windermere, Fla., .

 

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