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.
Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."
Read More: Warren Buffett's Top 10 Dividend Stocks
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.
Read More: 5 Stocks Insiders Love Right Now
Voxeljet AG
Voxeljet AG (VJET) provides three-dimensional printers and on-demand parts services to industrial and commercial customers. This stock closed up 8.5% at $19.90 in Wednesday's trading session.
Wednesday's Volume: 764,000
Three-Month Average Volume: 649,529
Volume % Change: 50%
From a technical perspective, VJET ripped substantially higher here right above some near-term support at $17.56 with above-average volume. This stock recently formed a double bottom chart pattern at $17.88 to $17.56. Following that bottom, shares of VJET have started to spike sharply higher and it's breaking out above some near-term overhead resistance at $19.48. Market players should now look for a continuation move to the upside in the near-term if VJET manages to take out Wednesday's intraday high of $19.95 with strong volume.
Traders should now look for long-biased trades in VJET as long as it's trending above Wednesday's intraday low of $18.30 or above some more near-term support at $17.56 and then once it sustains a move or close above $19.95 with volume that's near or above 649,529 shares. If that move kicks off soon, then VJET will set up to re-test or possibly take out its next major overhead resistance levels at $21.64 to $22. Any high-volume move above those levels will then give VJET a chance to tag $24.
Read More: Warren Buffett's Top 25 Stocks for 2014
VMware
VMware (VMW) provides virtualization infrastructure solutions in the U.S. and internationally. This stock closed up 3.2% to $101.83 in Wednesday's trading session.
Wednesday's Volume: 3.18 million
Three-Month Average Volume: 1.34 million
Volume % Change: 115%
From a technical perspective, VMW jumped notably higher here and broke out above some near-term overhead resistance at $99.36 with above-average volume. This uptick higher on Wednesday pushed shares of VMW inside of its previous gap-down-day zone from April that started at $107.32. Market players should now look for a continuation move to the upside in the short-term if VMW manages to take out Wednesday's intraday high of $102.31 with high volume.
Traders should now look for long-biased trades in VMW as long as it's trending above $99.36 or above Wednesday's intraday low of $98.99 and then once it sustains a move or close above $102.31 with volume that hits near or above 1.34 million shares. If that move gets underway soon, then VMW will set up to re-fill the rest of that gap from April that started at $107.32. Any high-volume move above $107.32 will then give VMW a chance to tag $110 to its 52-week high at $112.89.
Read More: 8 Stocks George Soros Is Buying
Synchronoss Technologies
Synchronoss Technologies (SNCR) provides cloud solutions and software-based activation for connected devices worldwide. This stock closed up 2.4% at $40.68 in Wednesday's trading session.
Wednesday's Volume: 747,000
Three-Month Average Volume: 361,990
Volume % Change: 134%
From a technical perspective, SNCR jumped notably higher here with strong upside volume flows. This stock gapped up sharply higher on Tuesday from around $34 to $41.40 with monster upside volume. Shares of SNCR had a continuation move higher on Wednesday with another day of strong volume. This move is quickly pushing shares of SNCR within range of triggering a near-term breakout trade. That trade will hit if SNCR manages to take out Wednesday's intraday high of $41 to its 52-week high at $41.40 with high volume.
Traders should now look for long-biased trades in SNCR as long as it's trending above Wednesday's intraday low of $39.67 or above $38 and then once it sustains a move or close above those breakout levels with volume that this near or above 361,990 shares. If that breakout triggers soon, then SNCR will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $45 to $50.
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.
RELATED LINKS:
>>5 Dividend Stocks Ready to Pay You More
>>3 Stocks Under $10 to Trade for Breakouts
>>3 Big M&A Stocks on Traders' Radars
Follow Stockpickr on Twitter and become a fan on Facebook.
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.
No comments:
Post a Comment