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.
Read More: 10 Stocks Billionaire John Paulson Loves in 2014
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.
Read More: 5 Rocket Stocks Ready for Blastoff This Week
FireEye
FireEye (FEYE) provides products and services for detecting, preventing and resolving advanced cybersecurity threats. This stock closed up 4.7% at $33.23 in Monday's trading session.
Monday's Volume: 10.59 million
Three-Month Average Volume: 5.82 million
Volume % Change: 150%
From a technical perspective, FEYE gapped up sharply higher here with strong upside volume flows. This spike to the upside on Monday briefly pushed shares of FEYE back above its 50-day moving average of $33.31. Shares of FEYE tagged an intraday high of $33.64, before it closed just below that level at $33.23. This gap to the upside is now starting to push shares of FEYE within range of triggering a near-term breakout trade. That trade will hit if FEYE manages to clear Monday's intraday high of $33.64 to some more near-term overhead resistance levels at $34.85 to $35.15 with high volume.
Traders should now look for long-biased trades in FEYE as long as it's trending above Monday's intraday low of $32.38 and then once it sustains a move or close above those breakout levels with volume that's near or above 5.82 million shares. If that breakout materializes soon, then FEYE will set up to re-test or possibly take out its next major overhead resistance levels at $37.39 to $41.82.
Read More: 10 Stocks Carl Icahn Loves in 2014
Autohome
Autohome (ATHM) operates as an online destination for automobile consumers in the People's Republic of China. This stock closed up 4.9% at $49.24 in Monday's trading session.
Monday's Volume: 1.45 million
Three-Month Average Volume: 784,573
Volume % Change: 67%
From a technical perspective, ATHM jumped higher here right above some near-term support at $44.31 with above-average volume. This move is starting to push shares of ATHM within range of triggering a near-term breakout trade. That trade will hit if ATHM manages to take out Monday's intraday high of $49.87 and then above some near-term resistance at $52 with high volume.
Traders should now look for long-biased trades in ATHM as long as it's trending above $47.50 or above more near-term support at $45 and then once it sustains a move or close above those breakout levels with volume that's near or above 784,573 shares. If that breakout gets underway soon, then ATHM will set up to re-test or possibly take out its next major overhead resistance level at its all-time high of $57.93.
Read More: 10 Stocks George Soros Is Buying
TIM Participacoes
TIM Participacoes (TSU), through its subsidiaries, provides telecommunication services in Brazil. This stock closed up 5% at $29.42 in Monday's trading session.
Monday's Volume: 3.24 million
Three-Month Average Volume: 985,592
Volume % Change: 215%
From a technical perspective, TSU ripped sharply higher here right above some near-term support at $27.50 with above-average volume. This stock recently gapped up sharply higher from around $25 to over $28 with heavy upside volume. Following that gap, shares of TSU have now resumed its uptrend and the stock is quickly moving within range of triggering a big breakout trade. That trade will hit if TSU manages to take out Monday's intraday high of $30 to its 52-week high at $30.52 with high volume.
Traders should now look for long-biased trades in TSU as long as it's trending above some key near-term support at $27.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 985,592 shares. If that breakout materializes soon, then TSU will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $35 to $38.
Immersion
Immersion (IMMR), an intellectual property and technology licensing company, creates, designs, develops and licenses technologies in North America, Europe, the Far East and internationally. This stock closed up 9% to $11.19 in Monday's trading session.
Monday's Volume: 1.10 million
Three-Month Average Volume: 255,197
Volume % Change: 284%
From a technical perspective, IMMR exploded sharply higher here right above some near-term support at $10.19 with heavy upside volume flows. This large spike to the upside on Monday also pushed shares of IMMR into breakout territory, since the stock took out some near-term overhead resistance levels at $10.79 to $11.15. Shares of IMMR are now quickly moving within range of triggering another big breakout trade. That trade will hit if IMMR manages to clear Monday's intraday high of $11.66 to its gap-down-day high from August at $11.98 with high volume.
Traders should now look for long-biased trades in IMMR as long as it's trending above $10.79 or above $10.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 255,197 shares. If that breakout hits soon, then IMMR will set up to re-fill some of its previous gap-down-day zone from August that started at $14.10.
Read More: 12 Stocks Warren Buffett Loves in 2014
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 Stocks Set to Soar on Bullish Earnings
>>Hedge Funds Love These Consumer Stocks -- Should You?
>>5 Under-$10 Stocks Making Big Moves
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