4 Stocks Spiking on Unusual Volume

Tickers in this article: ARNA INCY LNDC MCY
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.

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Incyte (INCY) , which focuses on the discovery, development and commercialization of proprietary small molecule drugs to treat serious unmet medical needs, is trading up 5.2% at $19.17 in recent trading.

Today's Volume: 1.56 million

Average Volume: 1.35 million

Volume % Change: 110%

From a technical perspective, INCY is ripping higher here right above its 50-day moving average of $17.30 with above-average volume. This move is quickly pushing INCY within range of triggering a major breakout trade. That trade will hit if INCY takes out some key overhead resistance levels at $19.60 to $19.80 and then once it clears more resistance at $20 to $20.53 with high volume.

Traders should now look for long-biased trades in INCY as long as it's trending above some near-term support at $18.14, and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.35 million shares. If that breakout triggers soon, then INCY will set up to re-fill some its previous gap down zone from last August that started at around $26. Arena Pharmaceuticals

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Arena Pharmaceuticals (ARNA) is a clinical-stage biopharmaceutical company focused on discovering, developing and commercializing oral drugs that target G protein-coupled receptors. This stock is trading up 4.8% at $10.13 in recent trading.

Today's Volume: 12.34 million

Average Volume: 8.61 million

Volume % Change: 135%

From a technical perspective, ARNA is spiking higher here right off some near-term support at $9.50 with monster upside volume. This stock has been uptrending strongly for the last two months, with shares moving higher from its recent low of $7.09 to its intraday high of $10.28. During that move, shares of ARAN have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed ARNA within range of triggering a major breakout trade. That trade will hit if ARNA manages to take out some key overhead resistance levels at $12.07 to $13.50 with high volume.