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3 Biotech Stocks Rising on Big Volume - views
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."
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.
>>5 Hated Earnings Stocks You Should Love With that in mind, let's take a look at several stocks rising on unusual volume recently. Galectin Therapeutics
Galectin Therapeutics (GALT), a development-stage company, engages in the development of therapies for cancer and fibrotic disease. This stock closed up 14.7% at $15.96 in Monday's trading session.
Monday's Volume: 2.15 million
Three-Month Average Volume: 555,231
Volume % Change: 253%
>>5 Rocket Stocks to Buy for a Market Bounce From a technical perspective, GALT skyrocketed higher here and broke out above some near-term overhead resistance levels at $14.18 to $14.33 with heavy upside volume. This super-spike is quickly pushing shares of GALT within range of triggering another big breakout trade. That trade will hit if GALT manages to take out Monday's high of $16.70 to its 52-week high at $17.88 with high volume.
Traders should now look for long-biased trades in GALT as long as it's trending above Monday's low of $13.92 and then once it sustains a move or close above those breakout levels with volume that hits near or above 555,231 shares. If that breakout hits soon, then GALT will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $20 to $23. Epizyme
Epizyme (EPZM), a clinical-stage biopharmaceutical company, engages in the discovery, development, planning and commercialization of various personalized therapeutics for the treatment of patients with genetically defined cancers. This stock closed up 3.3% at $29.40 in Monday's trading session.
Monday's Volume: 1.18 million
Three-Month Average Volume: 435,526
Volume % Change: 175%
>>4 Big Stocks to Trade (or Not) From a technical perspective, EPZM bounced notably higher here right above its 50-day moving average of $27.37 with above-average volume. This stock has been downtrending badly for the last month, with shares moving lower from its high of $41.23 to its recent low of $28.03. During that downtrend, shares of EPZM have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of EPZM now look ready to come out of that downtrend and possibly enter a new uptrend.
Traders should now look for long-biased trades in EPZM as long as it's trending above its 50-day at $27.37 and then once it sustains a move or close above Monday's high of $30.30 to some more near-term overhead resistance at $31.78 with volume that's near or above 435,526 shares. If we get that move soon, then EPZM will set up to re-test or possibly take out its next major overhead resistance levels at $36 to $38.
Bind Therapeutics (BIND), a clinical-stage nanomedicine platform company, develops various targeted and programmable therapeutics. This stock closed up 9.1% at $13.73 in Monday's trading session.
Monday's Volume: 234,000
Three-Month Average Volume: 147,116
Volume % Change: 85%
>>5 Stocks Poised for Breakouts From a technical perspective, BIND ripped sharply higher here back above its 50-day moving average of $12.90 with above-average volume. This move also pushed shares of BIND into breakout territory, since the stock took out some near-term overhead resistance at $12.93. Shares of BIND are now starting to trend within range of triggering another big breakout trade. That trade will hit if BIND manages to take out Monday's high of $14.58 to some more key resistance levels at $15.77 to its all-time high at $15.89 with high volume.
Traders should now look for long-biased trades in BIND as long as it's trending above Monday's low of $12.50 and then once it sustains a move or close above those breakout levels with volume that's near or above 147,116 shares. If that breakout hits soon, then BIND will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $20 to $23. 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 including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.