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.
With that in mind, let's take a look at several stocks rising on unusual volume recently.
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Inventure Foods
Inventure Foods (SNAK) manufactures and markets specialty snack food products in the U.S. and internationally. This stock closed up 5.3% at $12.26 in Wednesday's trading session.
Wednesday's Volume: 197,897
Three-Month Average Volume: 79,948
Volume % Change: 115%
From a technical perspective, SNAK jumped sharply higher here back above its 50-day moving average of $11.67 with above-average volume. This notable move to the upside on Wednesday is quickly pushing shares of SNAK within range of triggering a near-term breakout trade. That trade will hit if SNAK manages to clear its 200-day moving average of $12.55 to some more near-term overhead resistance at $12.69 with high volume.
Traders should now look for long-biased trades in SNAK as long as it's trending above Wednesday's intraday low of $11.51 and then once it sustains a move or close above those breakout levels with volume that this near or above 79,948 shares. If that breakout triggers soon, then SNAK will set up to re-test or possibly take out its next major overhead resistance levels at $13.30 to $14.
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Apple
Apple (AAPL) and its who'll -owned subsidiaries design, manufacture and market mobile communication and media devices, personal computers and portable digital music players worldwide. This stock closed up 3% at $101 in Wednesday's trading session.
Wednesday's Volume: 100.75 million
Three-Month Average Volume: 50.78 million
Volume % Change: 110%
From a technical perspective, AAPL trended notably higher here right above its 50-day moving average of $97.11 with above-average volume. This stock has been uptrending strong for the last four months, with shares moving higher from its low of $82.49 to its recent high of $103.74. During that uptrend, shares of AAPL have been making mostly higher lows and higher highs, which is bullish technical price action. This spike to the upside on Wednesday is starting to push shares of AAPL within range of triggering a near-term breakout trade. That trade will hit if AAPL manages to clear some near-term overhead resistance levels at $103.08 to its 52-week high at $103.74 with high volume.
Traders should now look for long-biased trades in AAPL as long as it's trending above its 50-day at $97.11 and then once it sustains a move or close above those breakout levels with volume that hits near or above 50.78 million shares. If that breakout materializes soon, then AAPL will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $110 to $115.
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Leidos
Leidos (LDOS) provides science and technology solutions in the U.S. This stock closed up 6.1% at $35.25 in Wednesday's trading session.
Wednesday's Volume: 1.51 million
Three-Month Average Volume: 473,256
Volume % Change: 190%
From a technical perspective, LDOS ripped sharply higher here right above its recent low of $31.76 with above-average volume. This stock gapped down sharply lower on Tuesday from just over $38 to that low of $31.76 with monster downside volume. That move pushed shares of LDOS into oversold territory, since its relative strength index reading dipped well below 30. Shares of LDOS have now started to rebound higher off oversold levels and it's quickly moving within range of triggering a near-term breakout trade. That trade will hit if LDOS manages to clear its gap-down-day high of $35.57 with high volume.
Traders should now look for long-biased trades in LDOS as long as it's trending above Wednesday's intraday low of $32.89 and then once it sustains a move or close above $35.57 with volume that's near or above 473,256 shares. If that breakout materializes soon, then LDOS will set up to re-fill some of its previous gap-down-day zone that started just above $38.
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Imperva
Imperva (IMPV) develops, markets, sells, services and supports data center security solutions that protect high value applications and data assets in physical and virtual data centers. This stock closed up 8.1% at $33.56 in Wednesday's trading session.
Wednesday's Volume: 1.37 million
Three-Month Average Volume: 449,012
Volume % Change: 176%
From a technical perspective, IMPV exploded sharply higher here right above some near-term support at $30 with strong upside volume flows. This big spike higher on Wednesday also pushed shares of IMPV into breakout territory, since the stock clear some near-term overhead resistance at $31.27. This move also pushed shares of IMPV inside its previous gap-down-day zone form last April that started near $50. Market players should now look for a continuation move to the upside in the short-term if IMPV manages to clear Wednesday's intraday high of $33.84 with high volume.
Traders should now look for long-biased trades in IMPV as long as it's trending above Wednesday's intraday low of $31.20 or above more near-term support at $30 and then once it sustains a move or close above $33.94 with volume that's near or above 449,012 shares. If that move gets started soon, then IMPV will set up to re-fill some of its previous gap-down-day zone from last April that started near $50.
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Noodles & Company
Noodles & Company (NDLS) develops and operates fast casual restaurants in the U.S. This stock closed up 2.9% at $18.26 in Wednesday's trading session.
Wednesday's Volume: 1.46 million
Three-Month Average Volume: 421,250
Volume % Change: 202%
From a technical perspective, NDLS gapped up sharply higher here right above its new 52-week low of $17.15 with above-average volume. This stock has been downtrending badly for the last two months and change, with shares moving lower from its high of $35.82 to that new 52-week low of $17.15. During that move, shares of NDLS have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of NDLS have now started to rebound off that $17.15 low and off oversold levels, since its current relative strength index reading is 25.
Traders should now look for long-biased trades in NDLS as long as it's trending above Wednesday's intraday low of $18.18 or above its 52-week low of $17.15 and then once it sustains a move or close above Wednesday's intraday high of $19.10 with volume that's near or above 421,250 shares. If that move begins soon, then NDLS will set up to re-test or possibly take out its next major overhead resistance levels at $20 to $22.58. Any high-volume move above $22.58 will then give NDLS a chance to re-fill some of its previous gap-down-day zone from August that started near $26.
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.
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