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 today.
Phoenix New Media
Phoenix New Media (FENG) is a new media company providing premium content on an integrated platform across Internet, mobile and TV channels in China. This stock closed up 13.9% to $10.36 in Friday's trading session.
Friday's Volume: 3.81 million
Three-Month Average Volume: 1.13 million
Volume % Change: 331%
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From a technical perspective, FENG ripped sharply higher here and broke out above some near-term overhead resistance at $10.35 with heavy upside volume. This stock has been uptrending modestly for the last month, with shares moving higher from its low of $8.08 to its intraday high of $10.38. During that move, shares of FENG have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of FENG within range of triggering a near-term breakout trade. That trade will hit if FENG manages to take out Friday's high of $10.38 and its 50-day moving average of $10.94 with high volume.
Traders should now look for long-biased trades in FENG as long as it's trending above Friday's low of $9.65 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.13 million shares. If that breakout hits soon, then FENG will set up to re-test or possibly take out its next major overhead resistance levels at $12.50 to its 52-week high at $13.38.
21Vianet Group
21Vianet Group (VNET) is a carrier-neutral Internet data center service provider. This stock closed up 6.8% at $20.54 in Friday's trading session.
Friday's Volume: 1.45 million
Three-Month Average Volume: 522,358
Volume % Change: 215%
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From a technical perspective, VNET spiked sharply higher here and broke out above some near-term overhead resistance at $20.53 with strong upside volume. This move briefly pushed shares of VNET into new 52-week high territory, since the stock flirted with some more near-term overhead resistance at $20.90. This stock has been uptrending strong for the last six months, with shares soaring higher from its low of $8.98 to its intraday high on Friday of $21.09. During that move, shares of VNET have been consistently making higher lows and higher highs, which is bullish technical price action.
Traders should now look for long-biased trades in VNET as long as it's trending above Friday's low of $18.99 or above more support at $18 and then once it sustains a move or close above Friday's high of $21.09 with volume that's near or above 522,358 shares. If we get that move soon, then VNET will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $25 to $27.
II-VI
II-VI (IIVI) develops, manufactures and markets products for a diversified customer base including industrial manufacturing, military and aerospace, electronics and telecommunications, and thermo-electronics applications. This stock closed up 2.7% at $15.77 in Friday's trading session.
Friday's Volume: 838,000
Three-Month Average Volume: 296,220
Volume % Change: 250%
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From a technical perspective, IIVI skyrocketed higher here right off its recent low of $15.13 with heavy upside volume. This stock has been downtrending badly for the last few weeks, with shares plunging lower from its high of $19.15 to its recent low of $15.13. During that downtrend, shares of IIVI have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of IIVI have now started to bounce off oversold territory, since its current relative strength index reading is 33. This bounce could be signaling that the downside volatility for IIVI is over in the short-term, and the stock is ready to rip much higher.
Traders should now look for long-biased trades in IIVI as long as it's trending above its recent low of $15.13 and then once it sustains a move or close above Friday's high of $15.97 with volume that hits near or above 296,220 shares. If we get that move soon, then IIVI will set up to rebound sharply higher towards its 200-day at $17.48 to its 50-day at $18.05.
Yoku Tudou
Yoku Tudou (YOKU) is an Internet television company in China. This stock closed up 11.1% at $29.30 in Friday's trading session.
Friday's Volume: 13.71 million
Three-Month Average Volume: 3.47 million
Volume % Change: 320%
From a technical perspective, YOKU exploded higher here and gapped up back above its 50-day moving average of $27.66 with monster upside volume. This move is quickly pushing shares of YOKU within range of triggering a big breakout trade. That trade will hit if YOKU manages to take out Friday's high of $29.73 and then once it clears its 52-week high at $32.49 with high volume.
Traders should now look for long-biased trades in YOKU as long as it's trending above Friday's low of $28 or above its 50-day at $27.66 and then once it sustains a move or close above those breakout levels with volume that hits near or above 3.47 million shares. If that breakout hits soon, then YOKU will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are its next major overhead resistance levels at $33 to $40.
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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