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WINDERMERE, Fla. (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.
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 today.
Acadia Pharmaceuticals (ACAD) is in the business of development and commercialization of small molecule drugs for the treatment of central nervous system disorders. This stock is trading up 10.8% at $13.40 in recent trading.
Today’s Volume: 6.39 million
Average Volume: 3.32 million
Volume % Change: 222%
From a technical perspective, ACAD is screaming higher here right off some near-term support at $11.81 with heavy upside volume. This move is quickly pushing shares of ACAD within range of triggering a major breakout trade. That trade will hit if ACAD manages to take out its 52-week high at $13.92 with high volume.
Traders should now look for long-biased trades in ACAD as long as it’s trending above some near-term resistance levels at $13 or $12.50 and then once it sustains a move or close above its 52-week high at $13.92 with volume that hits near or above 3.32 million shares. If that breakout hits soon, then ACAD will set up to re-test or possibly take out its next major overhead resistance levels at $15 to $16.50.
Coronado Biosciences (CNDO) is a biopharmaceutical company focused on the development of novel immunotherapy agents for inflammatory diseases and cancer. This stock is trading up 8.3% at $11.59 in recent trading.
Today’s Volume: 454,000
Average Volume: 325,298
Volume % Change: 156%
From a technical perspective, CNDO is gapping higher here right above some near-term support at $10.27 with above-average volume. This stock has been uptrending strong for the last six months, with shares moving higher from its low of $4 to its intraday high of $11.85. During that move, shares of CNDO have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now started to push shares of CNDO into breakout territory above some near-term overhead resistance at $11.57.
Traders should now look for long-biased trades in CNDO as long as it’s trending above today’s low of $11.14 and then once it sustains a move or close above $11.57 to $11.85 with volume that hits near or above 325,298 shares. If that breakout triggers soon, then CNDO will set up to enter new all-time high territory above $11.85, which is bullish technical price action. Some possible upside targets off that breakout are $13 to $15.
To see more stocks rising on unusual volume, check out the Stocks Rising On Unusual Volume portfolio on Stockpickr.
-- Written by Roberto Pedone in Winderemere, Fla.
At the time of publication, author had no positions in stocks mentioned.
Roberto Pedone, based out of Windermere, Fla., 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.