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3 Must-See Stocks Soaring on Unusual Volume - views
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.
CIT Group (CIT)
This company provides commercial financing and leasing products and other services to small and middle market businesses across a wide variety of industries. This stock is trading up 2% at $42.88 in recent trading.
Today's Volume: 3.98 million
Average Volume: 1.36 million
Volume % Change: 282%
Shares of CIT are trending higher today after news broke that the company has explored a possible sale of itself over the past year-and-a-half to a number of banks.
From a technical perspective, CIT is moving higher here right above some near-term support at $41.62 with above-average volume. This stock has been uptrending strong for the last three months, with shares soaring from its low of $36.02 to its recent high of $43.90. During that move shares of CIT have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of CIT within range of triggering a near-term breakout trade. That trade will hit if CIT manages to take out some near-term overhead resistance at $43.90 and some past resistance at $44.88 with high volume.
Traders should now look for long-biased trades in CIT as long as it's trending above its $41.62, and then once it sustains a move or close above $43.90 to $44.88 with volume that hits near or above 1.36 million shares. If that breakout triggers soon, then CIT will set up to re-test or possibly take out its next major overhead resistance levels at $48 to $49.57.
Vocera Communications (VCRA)
This company provides mobile communication solutions focused on addressing critical communication challenges facing hospitals. It helps its customers to improve patient safety & satisfaction, & increase hospital efficiency & productivity. This stock is trading up 1.8% to $26.88 in recent trading.
Today's Volume: 904,000
Average Volume: 224,695
Volume % Change: 512%
From a technical perspective, VCRA is spiking higher here right above its 50-day moving average at $25.57 and back above its 200-day moving average at $26.56 with high volume. This move is quickly pushing shares of VCRA within range of triggering a breakout trade out of a consolidation chart pattern. That breakout will hit if VCRA manages to take out some near-term overhead resistance levels at $26.97 to $27.41 and then once it takes out more resistance at $27.44 with high volume.
Traders should now look for long-biased trades in VCRA as long as it's trending above its 50-day at $25.57 or its 200-day at $26.56, and then once it sustains a move or close above those breakout levels with volume that hits near or above 224,695 shares. If that breakout triggers soon, then VCRA will set up to re-test or possibly take out its next major overhead resistance levels at $28.52 to $30.30.
This is a global healthcare company offering solutions across areas of core historical strength and multiple growth platforms. The company discovers, develops and distributes therapeutic solutions focused on patient's needs. This stock is trading up 3.5% at $46.91 in recent trading.
Today's Volume: 9.68 million
Average Volume: 1.39 million
Volume % Change: 748%
From a technical perspective, SNY is ripping higher here right above some near-term support at $44.50 with monster upside volume. This move is quickly pushing shares of SNY within range of triggering a near-term breakout trade. That trade will hit if SNY manages to take out its 50-day moving average at $47.38 with high volume.
Traders should now look for long-biased trades in SNY as long as it's trending above today's low of $45.46, and then once it sustains a move or close above its 50-day at $47.38 with volume that hits near or above 1.39 million shares. If that breakout triggers soon, then SNY will set up to re-test or possibly take out its next major overhead resistance levels at $48.26 to $49.50. Any high-volume move above $49.56 will then push SNY into new 52-week high territory, which is bullish technical price action.
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.