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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Vital Therapies
Vital Therapies (VTL), a biotherapeutic company, focuses on developing a cell-based therapy for the treatment of acute liver failure. This stock closed up 7.9% to $16.24 in Monday's trading session.
Monday's Volume: 289,000
Three-Month Average Volume: 40,751
Volume % Change: 378%
From a technical perspective, VTL spiked sharply higher here right above some near-term support at $14 with strong upside volume flows. This sharp move to the upside on Monday is quickly pushing shares of VTL within range of triggering a near-term breakout trade. That trade will hit if VTL manages to take out Monday's intraday high of $16.55 to some more near-term overhead resistance at $17 with high volume.
Traders should now look for long-biased trades in VTL as long as it's trending above support around $14 and then once it sustains a move or close above those breakout levels with volume that hits near or above 40,751 shares. If that breakout starts soon, then VTL will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $20.82 to $21.44.
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Teleflex
Teleflex (TFX) designs, develops, manufactures and supplies single-use medical devices for common diagnostic and therapeutic procedures in critical care and surgical applications worldwide. This stock closed up 0.84% to $107.31 in Monday's trading session.
Monday's Volume: 1.05 million
Three-Month Average Volume: 318,495
Volume % Change: 465%
From a technical perspective, TFX jumped modestly higher here with strong upside volume flows. This stock has been uptrending for the last few weeks, with shares moving higher from its low of $101.95 to its intraday high of $107.44. During that move, shares of TFX have been consistently making higher lows and higher highs, which is bullish technical price action. Market players should now look for a continuation move to the upside in the near-term if TFX manages to clear its 50-day moving average or $107.62 with high volume.
Traders should now look for long-biased trades in TFX as long as it's trending above $106 or $105 and then once it sustains a move or close above its 50-day at $107.62 with volume that hits near or above 318,495 shares. If that move gets started soon, then TFX will set up to re-test or possibly take out its next major overhead resistance levels at $110.07 to $110.88, or even its 52-week high at $111.24.
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Vitamin Shoppe
Vitamin Shoppe (VSI), though its subsidiaries, operates as a specialty retailer and direct marketer of nutritional products in the U.S. This stock closed up 7.1% to $45.43 in Monday's trading session.
Monday's Volume: 1.41 million
Three-Month Average Volume: 669,285
Volume % Change: 142%
From a technical perspective, VSI ripped sharply higher here right above its 50-day moving average of $41.91 and back above its 200-day moving average of $44.05 with above-average volume. This strong move higher on Monday is quickly pushing shares of VSI within range of triggering a near-term breakout trade. That trade will hit if VSI manages to take out Monday's intraday high of $46.50 to some more near-term overhead resistance at $46.78 with high volume.
Traders should now look for long-biased trades in VSI as long as it's trending above its 200-day at $44.05 or above $43 and then once it sustains a move or close above those breakout levels with volume that hits near or above 669,285 shares. If that breakout kicks off soon, then VSI will set up to re-test or possibly take out its next major overhead resistance levels at $48 to $49.83, or even $52.
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BlackBerry
BlackBerry (BBRY) provides wireless communications solutions worldwide. This stock closed up 8.5% at $10.30 in Monday's trading session.
Monday's Volume: 29.20 million
Three-Month Average Volume: 12.53 million
Volume % Change: 140%
From a technical perspective, BBRY gapped up sharply higher here back above its 50-day moving average of $10.01 with strong upside volume flows. This stock recently pulled back sharply from its high of $11.17 to its low of $8.65. That downside volatility pushed shares of BBRY back below both its 50-day and 200-day moving averages. That said, shares of BBRY have now started to rebound and reverse its trend to the upside with shares now moving back above both of those key moving averages. Market players should now look for a continuation move higher in the short-term if BBRY manages to take out Monday's intraday high of $10.35 with high volume.
Traders should now look for long-biased trades in BBRY as long as it's trending above Monday's intraday low of $9.65 and then once it sustains a move or close above Monday's intraday high of $10.35 with volume that this near or above 12.53 million shares. If that move gets set off soon, then BBRY will set up to re-test or possibly take out its next major overhead resistance levels at $11 to $11.17, or even its 52-week high at $11.65.
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-- 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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