3 Unusual-Volume Stocks to Trade for Breakouts

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.

Qihoo 360 Technology

Qihoo 360 Technology (QIHU) provides Internet and mobile security products and services in the People's Republic of China. This stock closed up 3.7% to $99.15 in Friday's trading session.

Friday's Volume: 5.66 million

Three-Month Average Volume: 2.73 million

Volume % Change: 123%

From a technical perspective, QIHU jumped higher here right above some near-term support at $95 with above-average volume. This spike higher on Friday briefly pushed shares of QIHU into breakout territory, since this stock flirted with some near-term overhead resistance at $99.57. Shares of QIHU tagged an intraday high of $101.60, before closing just below that level at $99.15. Market players should now look for a continuation move to the upside in the near-term if QIHU manages to take out Friday's intraday high of $101.60 with strong volume.

Traders should now look for long-biased trades in QIHU as long as it's trending above Friday's intraday low of $96.04 and then once it sustains a move or close above $101.60 with volume that hits near or above 2.73 million shares. If that move gets underway soon, the QIHU will set up to re-test or possibly take out its next major overhead resistance levels at $105.49 to around $110, or even $115.

HomeAway

HomeAway (AWAY), together with its subsidiaries, operates an online vacation rental property marketplace that enables property owners and managers to market properties for rental to vacation travelers. This stock closed up 8.9% to $35.57 in Friday's trading session.

Friday's Volume: 5.16 million

Three-Month Average Volume: 1.67 million

Volume % Change: 226%

From a technical perspective, AWAY gapped sharply higher here right off its 50-day moving average of $32.30 with strong upside volume flows. This big gap to the upside on Friday pushed shares of AWAY into breakout territory, since the stock took out some near-term overhead resistance levels at around $34 to $35.39, and briefly above its 200-day moving average of $36.27. Market players should now look for a continuation move to the upside in the short-term if AWAY manages to take out Friday's intraday high of $36.90 to some past overhead resistance at $37.75 with high volume.

Traders should now look for long-biased trades in AWAY as long as it's trending above Friday's intraday low of $34 and then once it sustains a move or close above those $36.90 to $37.75 with volume that hits near or above 1.67 million shares. If that move begins soon, then AWAY will set up to re-test or possibly take out its next major overhead resistance levels at $42 to $44.

Zoe's Kitchen

Zoe's Kitchen (ZOES), through its subsidiaries, develops and operates fast casual Mediterranean cuisine restaurants in the U.S. This stock closed up 2.7% at $31.52 in Friday's trading session.

Friday's Volume: 594,000

Three-Month Average Volume: 279,876

Volume % Change: 85%

From a technical perspective, ZOES bounced notably higher here right off its 50-day moving average of $30.33 with above-average volume. This bounce higher on Friday is starting to push shares of ZOES within range of triggering a near-term breakout trade. That trade will hit if ZOES manages to take out Friday's intraday high of $31.94 to around $33 with high volume.

Traders should now look for long-biased trades in ZOES as long as it's trending above Friday's intraday low of $30.26 and then once it sustains a move or close above those breakout levels with volume that hits near or above 279,876 shares. If that breakout begins soon, then ZOES will set up to re-test or possibly take out its all-time high at $35.59.

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.


Stocks: 5 things to know before the open

S&P futures 2014 07 29 Click chart for in-depth premarket data. LONDON (CNNMoney) Quarterly earnings continue to come in thick and fast on Wall Street, but that's not the only thing happening Tuesday.

Here are the five things you need to know before the opening bell rings in New York:

1. U.S. earnings: Major companies including UPS (UPS), Reynolds American (RAI) and Pfizer (PFE) are slated to report earnings before the opening bell.

Twitter (TWTR, Tech30), American Express (AXP) and Sturm Ruger (RGR) will report after the close.

Shares in Herbalife (HLF) are declining by more than 10% premarket after the company posted earnings that missed analysts' forecasts.

2. European earnings: Shares in two major European banks -- UBS (UBS) and Deutsche Bank (DB) -- were under pressure after both reported earnings and flagged new litigation risks.

Shares in BP (BP) were down 1% after the oil giant reported its latest set of results. BP, which owns a big stake in Russian oil giant Rosneft, has warned that it could suffer if Western nations slap more sanctions on Russia over the crisis in Ukraine.

3. More sanctions coming? European officials continue to work Tuesday on details of new sanctions that could restrict Russia's access to European financial markets, arms and energy technology. Western nations have upped their pressure on Russia since flight MH17 was brought down in the region.

Japan introduced its own sanctions on Russia, largely reflecting previous measures adopted by the EU.

Russia's main Micex index was dipping into the red, alongside most of Europe's major stock markets.

U.S. stock futures were also in negative territory.

4. Economic insights: Various important economic data points are set for release Tuesday.

S&P/Case-Shiller's home price index for May will be released at 9 a.m. ET. This index gives deep insight into the health of America's vast housing market.

Then the Conference Board will release its monthly consumer confidence index at 10 a.m.

5. Monday market recap: U.S. stocks ended the day mixed Monday. The Dow eked out a slight gain while the S&P 500 barely budged and the Nasdaq dipped into negative territory.

10 Insurance Stocks to Sell Now

RSS Logo Portfolio Grader Popular Posts: Hottest Healthcare Stocks Now – INO CNC WCG MNKD7 Biotechnology Stocks to Buy NowHottest Healthcare Stocks Now – INO VRX EXAS AGN Recent Posts: Biggest Movers in Healthcare Stocks Now – ARIA KERX INCY HAE Biggest Movers in Technology Stocks Now – DWRE YHOO CERN BRKR Hottest Financial Stocks Now – TPL CG AGII CIB View All Posts 10 Insurance Stocks to Sell Now

The overall ratings of 10 insurance stocks are down on Portfolio Grader this week. Each of these rates a “D” (“sell”) or “F” overall (“strong sell”).

Meadowbrook Insurance Group, Inc. (MIG) earns an F (“strong sell”) this week, moving down from last week’s grade of D (“sell”). Meadowbrook Insurance Group provides alternative risk management programs and services. In Portfolio Grader’s specific subcategories of Earnings Revisions, Cash Flow and Sales Growth, MIG also gets an F. To get an in-depth look at MIG, get Portfolio Grader’s complete analysis of MIG stock.

Crawford & Company Class B’s (CRD.B) rating falls to a D (“sell”) this week, down from C (“hold”) the week prior. Crawford & Company is an independent provider of claims management solutions to insurance companies and self-insured entities. For more information, get Portfolio Grader’s complete analysis of CRD.B stock.

Erie Indemnity Company Class A (ERIE) gets weaker ratings this week as last week’s D drops to an F. Erie Indemnity is involved in the property/casualty insurance business. The stock also rates an F in Earnings Surprise. To get an in-depth look at ERIE, get Portfolio Grader’s complete analysis of ERIE stock.

Slipping from a D to an F rating, Progressive Corporation (PGR) takes a hit this week. Progressive is an insurance holding company that offers primarily personal and commercial automobile insurance, in addition to other property-casualty insurance products. For more information, get Portfolio Grader’s complete analysis of PGR stock.

The rating of Aspen Insurance Holdings Limited (AHL) declines this week from a C to a D. Aspen Insurance Holdings provides insurance and reinsurance solutions worldwide. To get an in-depth look at AHL, get Portfolio Grader’s complete analysis of AHL stock.

Validus Holdings, Ltd. (VR) experiences a ratings drop this week, going from last week’s C to a D. Validus Holdings provides reinsurance and insurance coverage in the property and marine markets. The stock also gets an F in Earnings Surprise. For more information, get Portfolio Grader’s complete analysis of VR stock.

Cincinnati Financial Corporation’s (CINF) rating weakens this week, dropping to an F versus last week’s D. Cincinnati Financial markets property casualty insurance through independent insurance agents. The stock gets F’s in Earnings Momentum and Earnings Revisions. To get an in-depth look at CINF, get Portfolio Grader’s complete analysis of CINF stock.

Axis Capital Holdings Limited (AXS) is having a tough week. The company’s rating falls from a C to a D. Axis Capital Holdings provides various insurance and reinsurance products to worldwide operations. For more information, get Portfolio Grader’s complete analysis of AXS stock.

This week, OneBeacon Insurance Group, Ltd. Class A’s (OB) rating worsens to a D from the company’s C rating a week ago. OneBeacon Insurance Group offers specialized insurance products and services. The stock also rates an F in Sales Growth. To get an in-depth look at OB, get Portfolio Grader’s complete analysis of OB stock.

The rating of State Auto Financial Corporation (STFC) slips from a C to a D. State Auto Financial is a property and casualty insurance company engaged in writing personal and business lines of insurance. The stock also gets an F in Earnings Momentum. Shares of the stock have been trading at an exceptionally rapid pace, up twofold from the week prior. For more information, get Portfolio Grader’s complete analysis of STFC stock.

Louis Navellier’s proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results — with A being “strong buy,” and F being “strong sell.” Explore the tool here.