Stock Quotes in this Article: FBC, GIII, PAY, PPO, PRCP, THO, NQ, XON, PEGI

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.

Perceptron (PRCP)

This company develops, produces and sells non-contact measurement and inspection solutions for industrial applications. This stock closed up 20% at $14.41 in Monday's trading session.  

Monday's Volume: 521,000

Three-Month Average Volume: 127,384

Volume % Change: 332%

From a technical perspective, PRCP skyrocketed higher here with heavy upside volume. This stock formed a double bottom chart pattern a month and a half ago at $9.01 to $9.11. Following that bottom, shares of PRCP have been uptrending strong from a low of $9.01 to its intraday high of $14.41. During that uptrend, shares of PRCP have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of PRCP within range of triggering a near-term breakout trade.

That trade will hit if PRCP manages to take out Monday's high of $14.47 to its 52-week high at $14.89 with high volume.  Traders should now look for long-biased trades in PRCP as long as it's trending above Monday's low of $12.50, and then once it sustains a move or close above those breakout levels with volume that hits near or above 127,384 shares. If that breakout hits soon, then PRCP will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are $17 to $20.  

Pattern Energy Group (PEGI)

This company owns and operates eight wind power projects in the US, Canada and Chile. This stock closed up 3% at $30.37 in Monday's trading session.  

Monday's Volume: 1.01 million

Three-Month Average Volume: 356,454

Volume % Change: 328%

From a technical perspective, PEGI spiked higher here and broke out above its previous all-time high at $29.66 with strong upside volume. This stock has been uptrending strong for the last two months, with shares moving higher from its low of $22.32 to its recent high of $30.81. During that uptrend, shares of PEGI have been consistently making higher lows and higher highs, which is bullish technical price action. Market players should now look for a continuation move higher in the short-term if PEGI can manage to print a new all-time high above Monday's high of $30.81 with strong volume. 

Traders should now look for long-biased trades in PEGI as long as it's trending above Monday's low of $29.42 or above more support at $28.50, and then once it sustains a move or close above $30.81 with volume that's near or above 356,454 shares. If we get that move soon, then PEGI will set up to enter new all-time high territory, which is bullish technical price action. Some possible upside targets off that move are $35 to $37. 

NQ Mobile (NQ)

This company is engaged in the provision of mobile Internet services in the People's Republic of China and overseas markets. Its service portfolio includes mobile security and privacy protection, mobile games and advertising. This stock closed up 17.3% at $13.90 in Monday's trading session.   

Monday's Volume: 13.56 million

Three-Month Average Volume: 6.88 million

Volume % Change: 135%

From a technical perspective, NQ skyrocketed higher here back above both its 200-day moving average at $12.99 and its 50-day moving average at $13.29 with heavy upside volume. This move briefly pushed shares of NQ into breakout territory, since the stock flirted with some near-term overhead resistance levels at $14.18 to $14.75. Shares of NQ closed just below those levels at $13.90. This sharp spike higher on Monday is now starting to push shares of NQ within range of triggering an even bigger breakout trade.

That trade will hit if NQ manages to take out Monday's high of $14.80 to some more past overhead resistance at $15.85 with high volume.  Traders should now look for long-biased trades in NQ as long as it's trending above its 200-day at $12.99 or above $12, and then once it sustains a move or close above those breakout levels with volume that's near or above 6.88 million shares. If that breakout hits soon, then NQ will set up to re-test or possibly take out its next major overhead resistance level at $22. 

Intrexon (XON)

This is a synthetic biology company that designs, builds and regulates gene programs using its proprietary and complementary technologies. This stock closed up 3.1% at $22.50 in Monday's trading session.

Monday's Volume: 763,000

Three-Month Average Volume: 344,868

Volume % Change: 101%

From a technical perspective, XON spiked notably higher here right above its 50-day moving average of $20.61 with above-average volume. This move is quickly pushing shares of XON within range of triggering a near-term breakout trade. That trade will hit if XON manages to take out some key overhead resistance levels at $23.16 to $23.55 with high volume.  Traders should now look for long-biased trades in XON as long as it's trending above its 50-day at $20.61 or above more support at $20, and then once it sustains a move or close above those breakout levels with volume that's near or above 344,868 shares. If that breakout hits soon, then XON will set up to re-test or possibly take out its next major overhead resistance levels at $25.95 to $27.46. 

VeriFone Systems (PAY)

This company designs, markets, and services transaction automation systems that enable secure electronic payments among consumers, merchants, and financial institutions. This stock closed up 5.5% at $25.92 in Monday's trading session. 

Monday's Volume: 3.22 million

Three-Month Average Volume: 1.59 million

Volume % Change: 80%

From a technical perspective, PAY spiked sharply higher here right off its 50-day moving average of $24.18 with above-average volume. This move is quickly pushing shares of PAY within range of triggering a big breakout trade. That trade will hit if PAY manages to take out some near-term overhead resistance at $25.97 with high volume.  Traders should now look for long-biased trades in PAY as long as it's trending above its 50-day at $24.18, and then once it sustains a move or close above $25.97 with volume that's near or above 1.59 million shares. If that breakout hits soon, then PAY will set up to re-fill some of its previous gap down zone from March that started near $34. 

Polypore International (PPO)

This is a technology filtration company which develops, manufactures and markets specialized microporous membranes used in separation and filtration processes. This stock closed up 5% at $39.92 in Monday's trading session.

Monday's Volume: 1.16 million

Three-Month Average Volume: 525,073

Volume % Change: 106%

From a technical perspective, PPO spiked sharply higher here right off its 50-day moving average of $38.76 with above-average volume. This stock recently formed a double bottom chart pattern at $35.53 to $36. Following that bottom, shares of PPO have uptrending with the stock moving higher from $36 to its intraday high of $40.91. During that uptrend, shares of PPO have been consistently making higher lows and higher highs, which is bullish technical price action. Market players should now look for a continuation move higher in the short-term if PPO can manage to take out Monday's high of $40.91 with strong volume.  Traders should now look for long-biased trades in PPO as long as it's trending above its 50-day at $38.75, and then once it sustains a move or close above $40.91 with volume that's near or above 525,073 shares. If we get that move soon, then PPO will set up to re-fill some of its previous gap down zone from November that started just above $44. If that gap gets filled with volume, then PPO could tag its next major overhead resistance levels at $46.21 to $46.46.  

G-III Apparel Group (GIII)

This company designs, manufactures and markets apparel, including outerwear, dresses, sportswear, women's suits and women's performance wear, as well as luggage and women's handbags, small leather goods and cold weather accessories. This stock closed up 1.1% at $74.18 in Monday's trading session.

Monday's Volume: 283,000

Three-Month Average Volume: 158,503

Volume % Change: 110%

From a technical perspective, GIII spiked modestly higher here right off some near-term support at $72.50 with above-average volume. This stock has been uptrending strong for the last four months, with shares moving higher from its low of $44.80 to its recent high of $74.75. During that uptrend, shares of GIII have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of GIII within range of triggering a near-term breakout trade. That trade will hit if GIII manages to take out Monday's high of $74.47 to its 52-week high at $74.75 with high volume.  Traders should now look for long-biased trades in GIII as long as it's trending above some near-term support at $72.50 or above ore support near $70, and then once it sustains a move or close above those breakout levels with volume that's near or above 158,503 shares. If that breakout hits soon, then GIII will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are $80 to $85. 

Thor Industries (THO)

This company manufactures and sells a range of recreation vehicles and small and mid-size buses in the U.S. and Canada. This stock closed up 3.5% at $54.84 in Monday's trading session.

Monday's Volume: 788,000

Three-Month Average Volume: 385,990

Volume % Change: 98%

From a technical perspective, THO spiked notably higher here back above its 50-day moving average of $54.21 with above-average volume. This stock recently formed a triple bottom chart pattern at $50.78, $51.54 and $51.25. Following that bottom, shares of THO have started to uptrend back above its 50-day and it's now moving within range of triggering a near-term breakout trade. That trade will hit if THO manages to take out Monday's high of $55.71 to some near-term overhead resistance at $56.53 with high volume.  Traders should now look for long-biased trades in THO as long as it's trending above Monday's low of $52.98, and then once it sustains a move or close above those breakout levels with volume that's near or above 385,990 shares. If that breakout hits soon, then THO will set up to re-test or possibly take out its next major overhead resistance levels at $58.65 to its 52-week high at $59.94. Any high-volume move above those levels will then give THO a chance to trend north of $60. 

Flagstar Bancorp (FBC)

This company offers consumer and commercial financial products and services to individuals, and small and middle market businesses in Michigan, Indiana, and Georgia. This stock closed up 3% at $19.12 in Monday's trading session.

Monday's Volume: 470,000

Three-Month Average Volume: 252,940

Volume % Change: 93%

From a technical perspective, FBC spiked notably higher here with above-average volume. This stock has been uptrending strong for the last four months, with shares moving higher from its low of $13.71 to its recent high of $19.15. During that uptrend, shares of FBC have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of FBC within range of triggering a big breakout trade.

That trade will hit if FBC manages to take out some near-term overhead resistance at $19.15 to its 52-week high at $20.38 with high volume.  Traders should now look for long-biased trades in FBC as long as it's trending above near-term support at $18 or above its 50-day at $17.47, and then once it sustains a move or close above those breakout levels with volume that's near or above 252,940 shares. If that breakout hits soon, then FBC will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are $25 to $27. 

-- 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.