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3 Stocks Jumping on Abnormally High Volume

Tickers in this article: ARLP LNG SPW
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.

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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 today.

Alliance Resource Partners (ARLP)

This company is a producer and marketer of coal mainly to major United States utilities and industrial users. This stock is trading up 2.2% at $57.33 in recent trading.

Today's Volume: 87,000

Average Volume: 111,903

Volume % Change: 50%

From a technical perspective, ARLP is trending higher here right above some near-term support at $53.10 with decent volume. This move is quickly pushing shares of ARLP within range of triggering a major breakout trade. That trade will hit once ARLP takes out its 50-day at $58.42 and its 200-day at $58.53 and then once it clears more overhead resistance at $58.73 with high volume.

Traders should now look for long-biased trades in ARLP as long as it's trending above today's low of $55.49, and then once it sustains a move or close above those breakout levels with volume that hits near or above 111,903 shares. If that breakout triggers soon, then ARLP will set up to re-test or possibly take out its next major overhead resistance levels at $61 to $62.

SPX Corporation (SPW)

This is a global multi-industry manufacturing company, which offers highly-specialized engineered solutions to solve critical problems for customers. This stock is trading up 1.9% at $68 in recent trading.

Today's Volume: 1.06 million

Average Volume: 964,821

Volume % Change: 111%

From a technical perspective, SPW is bouncing higher here right off its 50-day moving average of $66.52 and back above its 200-day moving average of $67.83 with above average volume. This stock has been uptrending for the last few weeks, with shares moving higher from a low of $60.61 to its intraday high of $68.99. During that move, shares of SPW have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed SPW within range of triggering a major breakout trade. That trade will hit once SPW manages to clear some near-term overhead resistance levels at $69.11 to $70.88 and then once it takes out more overhead resistance at $71.36 with high volume.