Stock Quotes in this Article: AVGO, KS, VPHM, BODY, KORS

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.”

>>5 Stocks Poised for Breakouts

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.

Zhongpin

Zhongpin (HOGS) is engaged in the meat and food processing and distribution business in the People’s Republic of China. This stock is trading up 8% at $11.09 in recent trading.

Today’s Volume: 447,000

Average Volume: 130,262

Volume % Change: 631%

From a technical perspective, HOGS is soaring here right off its 50-day moving average of $10.19 with above-average volume. This move has started to push HOGS into breakout territory, since it’s taken out some near-term overhead resistance levels at $10.47 to $10.61. Traders should now watch for the next major breakout trade to trigger for HOGS. That trade will hit once HOGS manages to take out key overhead resistance levels at $11.02 to $11.60 with high volume. At last check, HOGS has hit an intraday high of $11.23 and volume is well above its three-month average action of 130,262 shares.

Traders should now look for long-biased trades in HOGS as long as it’s trending above $10.61, and then once it sustains a move or close above those breakout levels with volume that’s near or above 130,262 shares. If that breakout triggers soon, then HOGS will have a great chance of re-testing or possibly taking out its next major overhead resistance levels at $12.25 to $12.50.

Body Central

Body Central (BODY) is a specialty retailer of young women's apparel and accessories operating retail stores in the South, Mid-Atlantic and Midwest regions of the U.S. This stock is trading up 10.3% at $10.11 in recent trading.

Today’s Volume: 637,000

Average Volume: 458,344

Volume % Change: 242%

From a technical perspective, BODY is ripping higher here back above its 50-day moving average of $9.39 with above-average volume. This move has also pushed BODY above some near-term overhead resistance at $9.34. Traders should watch for BODY to trigger its next major breakout trade. That trade will hit once BODY clears some near-term overhead resistance levels at $10.86 to $11.33 with high volume.

Traders should now look for long-biased trades in BODY as long as it’s trending above $9.34, and then once it sustains a move or close above $10.86 to $11.33 with volume that’s near or above 458,344 shares. If that breakout hits soon, then BODY will have a great chance of re-filling some or its entire gap down zone from July that started around $16.

Cambrex

Cambrex (CBM) is a life sciences company, which provides products and services, which accelerate and improve the development and commercialization of new and generic therapeutics. This stock is trading up 5% at $13.10 in recent trading.

Today’s Volume: 283,000

Average Volume: 257,009

Volume % Change: 159%

From a technical perspective, CBM is trending higher here right off some near-term support at $12.50 with above-average volume. This move is quickly pushing CBM within range of triggering a major breakout trade. That trade will hit once CBM manages to clear some near-term overhead resistance at $13.44 with high volume.

Traders should now look for long-biased trades in CBM as long as it’s trending above $12.24, and then once it sustains a move or close above $13.44 with volume that’s near or above 257,009 shares. If that breakout triggers soon, then CBM could possibly tag $15 to $20 in the near future.

Huntington Ingalls Industries

Huntington Ingalls Industries (HII) owns and operates the Northrop Grumman shipbuilding business. This stock is trading up 1.5% at $42.49 in recent trading.

Today’s Volume: 324,000

Average Volume: 225,605

Volume % Change: 180%

From a technical perspective, HII is moving notably higher here with above-average volume. This move is quickly pushing HII within range of triggering a major breakout trade. That trade will hit once HII takes out its 2011 high of $42.71 with high volume. At last check, HII has hit an intraday high of $42.75 and volume is well above its three-month average action of 225,605 shares.

Traders should now look for long-biased trades in HII as long as it’s trending above today’s low of $41.66, and then once it sustains a move or close above $42.75 with volume that’s near or above 225,605 shares. If that breakout triggers soon, then HII could be on its way towards $45 to $50.

KapStone Paper and Packaging

KapStone Paper and Packaging (KS) is an integrated manufacture and sale of unbleached kraft paper and corrugated products for industrial and consumer markets. This stock is trading up 8% at $20.93 in recent trading.

Today’s Volume: 544,000

Average Volume: 257,912

Volume % Change: 287%

From a technical perspective, KS is gapping sharply higher here with heavy volume. This move is quickly pushing KS within range of triggering a near-term breakout trade. That trade will hit once KS manages to clear some near-term overhead resistance at $21.37 with high volume.

Traders should now look for long-biased trades in KS once it sustains a move or close over $21.37 with volume that’s near or above 257,912 shares. If that breakout triggers soon, then KS will have a great chance of hitting $25 or higher in the near future.

Michael Kors

Michael Kors (KORS) is a designer, marketer, distributor and retailer of women’s apparel and accessories and men’s apparel bearing the Michael Kors name. This stock is trading up 6% at $55.68 in recent trading.

Today’s Volume: 6.2 million

Average Volume: 3.1 million

Volume % Change: 248%

Shares of KORS are ripping higher today after it hiked its fiscal second-quarter and full-year earnings estimates after posting an increase in quarter-to-date comparable store sales.

From a technical perspective, KORS is gapping up sharply higher here with monster volume. This move is quickly pushing KORS within range of triggering a major breakout trade. That trade will hit once KORS manages to clear its all-time high of $56.70 with high volume. At last check, KORS has hit an intraday high of $56.63 and volume is well above its three-month average action of 3.1 million shares.

Traders should now look for long-biased trades as long as KORS is trending above today’s low of $54.40, and then once it sustains a move or close above $56.70 with volume that’s near or above 3.1 million shares. If that breakout triggers soon, then KORS will have a great chance of hitting $60 to $70. Keep in mind that if KORS triggers that breakout, then the stock will enter all-time high territory, which is bullish technical price action.

Avago Technologies

Avago Technologies (AVGO) is a designer, developer and global supplier of a range of analog semiconductor devices with a focus on III-V based products. This stock is trading up 5.8% at $35.73 in recent trading.

Today’s Volume: 3.7 million

Average Volume: 1.8 million

Volume % Change: 254%

From a technical perspective, AVGO is bouncing to the upside here right off its 200-day moving average of $34.36 with above-average volume. Shares of AVGO have also started to flirt with its 50-day moving average of $35.74 today.

Traders should now look for long-biased trades in AVGO once it manages to trigger its next major breakout trade. That trade will hit once AVGO clears some near-term overhead resistance levels at $36.83 to $37.88 with high volume. Look for a sustained move or close above those levels with volume that hits near or above 1,832,270 shares. If that breakout triggers soon, then AVGO will have a great chance to re-test or possibly take out its next major overhead resistance levels at $39.22 to $39.45.

On the flip side, I would avoid AVGO or look for short-biased trades if it fails to trigger that breakout, and then drops back below some near-tem support levels at $33.22 to $32.14 with heavy volume.

Viropharma

Viropharma (VPHM) is engaged in the development and commercialization of products that address diseases, with a focus on products used by physician specialists or in hospital settings. This stock is trading up 6.4% at $30 in recent trading.

Today’s Volume: 2.1 million

Average Volume: 1.1 million

Volume % Change: 178%

Shares of Viropharma are soaring today after the FDA announced it will allow them and Halozyme Therapeutics (HALO) to resume clinical trials of a joint product they’re developing.

From a technical perspective, VPHM is gapping up sharply here with heavy volume. This move has managed to push VPHM into breakout territory, since the stock has cleared some near-term overhead resistance at $28.49.

Traders should look to get long VPHM as long as it’s trending above today’s low of $29.03 and then once it sustains a move or close above $31.13 with volume that’s near or above 1.1 million shares. If that breakout triggers soon, then VPHM will have a great chance of re-testing or possibly taking out its next major overhead resistance level at $33.17. Any high-volume move over $33.17 should be considered bullish action, since it will push VPHM into new 52-week high territory.

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.