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 recently.
Vince Holding (VNCE) is engaged in the design, merchandise, wholesale, and retail of contemporary fashion brands products. This stock closed up 3% at $36.62 in Monday's trading session.
Monday's Volume: 503,000
Three-Month Average Volume: 290,238
Volume % Change: 65%
From a technical perspective, VNCE spiked notably higher here right above some near-term support at $34.76 with above-average volume. This spike higher on Monday is starting to push shares of VNCE within range of triggering a near-term breakout trade. That trade will hit if VNCE manages to take out Monday's intraday high of $36.87 to its all-time high of $38 with high volume.
Traders should now look for long-biased trades in VNCE as long as it's trending above Monday's intraday low of $35.55 or above some key near-term support at $34.76 and then once it sustains a move or close above those breakout levels with volume that's near or above 290,238 shares. If that breakout kicks off soon, then VNCE will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $45 to $48.
Qunar Cayman Islands
Qunar Cayman Islands (QUNR) operates online travel commerce platform for travel service providers (TSPs) and display advertisers in the People's Republic of China. This stock closed up 2.7% at $28.55 in Monday's trading session.
Monday's Volume: 2.47 million
Three-Month Average Volume: 693,350
Volume % Change: 301%
From a technical perspective, QUNR jumped higher here with heavy upside volume flows. This stock has been uptrending over the last week, with shares moving higher from its low of $22.11 to its intraday high of $29.16. During that move, shares of QUNR have been consistently making higher lows and higher highs, which is bullish technical price action. Market players should now look for a continuation move higher in the short-term if QUNR manages to take out Monday's intraday high of $29.16 with high volume.
Traders should now look for long-biased trades in QUNR as long as it's trending above Monday's intraday low of $26.90 or above $26 and then once it sustains a move or close above $29.16 with volume that's near or above 693,350 shares. If that move gets underway soon, then QUNR will set up to re-test or possibly take out its next major overhead resistance levels at $31.20 to $31.35, or even $33 to $32.72 to $33.70.
Dicerna Pharmaceuticals (DRNA), a biopharmaceutical company, focuses on the discovery and development of treatments for liver diseases and cancers based on a proprietary RNA interference technology platform in the U.S. and internationally. This stock closed up 19.9% at $22.57 in Monday's trading session.
Monday's Volume: 665,000
Three-Month Average Volume: 174,164
Volume % Change: 394%
From a technical perspective, DRNA gapped up sharply higher here and broke out above some near-term overhead resistance levels at $18.84 to $21.50 with monster upside volume. This gap to the upside also triggered right above DRNA's 50-day moving average of $17.55. Market players should now look for a continuation move to the upside in the short-term if DRNA manages to take out Monday's intraday high of $23.39 with high volume.
Traders should now look for long-biased trades in DRNA as long as it's trending above Monday's intraday low of $20.30 and then once it sustains a move or close above $23.39 with volume that's near or above 174,164 shares. If that move kicks off soon, then DRNA will set up to re-test or possibly take out its next major overhead resistance levels at $27.50 to $30.
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 includingCNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.