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3 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 Stocks Poised for Breakouts With that in mind, let's take a look at several stocks rising on unusual volume recently. B&G Foods
B&G Foods (BGS) manufactures, sells and distributes shelf-stable food and household products in the U.S., Canada and Puerto Rico. This stock closed up 3.8% at $31.57 in Friday's trading session.
Friday's Volume: 629,000
Three-Month Average Volume: 352,443
Volume % Change: 99%
From a technical perspective, BGS gapped up notably higher here into breakout territory above some near-term overhead resistance at $30.59 with above-average volume. This stock has been uptrending for the last month and change, with shares moving higher from its low of $27.05 to its intraday high of $31.84. During that uptrend, shares of BGS have been consistently making higher lows and higher highs, which is bullish technical price action. Market players should now look for a continuation move to the upside in the short-term if BGS manages to take out Friday's high of $31.84 with strong volume.
Traders should now look for long-biased trades in BGS as long as it's trending above Friday's low $31.09 or above its 50-day at $30.28 and then once it sustains a move or close above $31.84 with volume that hits near or above 352,443 shares. If that move kicks off soon, then BGS will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $32.77 to $34.
AZZ (AZZ) manufactures electrical equipment and components for power generation, transmission and distribution, and the general industrial markets. This stock closed up 3% at $45.70 in Friday's trading session.
Friday's Volume: 336,000
Three-Month Average Volume: 187,787
Volume % Change: 326%
From a technical perspective, AZZ spiked notably higher here right above its 50-day moving average of $43.40 with strong upside volume. This move briefly pushed shares of AZZ into breakout territory, after the stock flirted with some near-term overhead resistance levels at $45.10 to $46. Market players should now look for a continuation move to the upside in the short-term if AZZ manages to take out Friday's high of $46.82 with high volume.
Traders should now look for long-biased trades in AZZ as long as it's trending above Friday's low of $44.27 or above its 50-day at $43.40 and then once it sustains a move or close above Friday's high of $46.82 with volume that's near or above 187,787 shares. If that move gets underway soon, then AZZ will set up to re-test or possibly take out its 52-week high of $49.64. Avon Products
Avon Products (AVP) manufactures and markets beauty and related products. This stock closed up 2.6% at $15.07 in Friday's trading session.
Friday's Volume: 9.34 million
Three-Month Average Volume: 4.26 million
Volume % Change: 235%
From a technical perspective, AVP spiked notably higher here back above its 50-day moving average of $14.89 with heavy upside volume. This stock recently formed a triple bottom chart pattern at $14.18, $14.18 and $14.27. Following that bottom, shares of AVP have started to spike higher back above its 50-day and it's quickly moving within range of triggering a big breakout trade. That trade will if AVP manages to take out Friday's high of $15.07 to some more near-term overhead resistance at $15.67 with high volume.
Traders should now look for long-biased trades in AVP as long as it's trending above Friday's low of $14.56 or above those triple bottom support levels and then once it sustains a move or close above those breakout levels with volume that's near or above 4.26 million shares. If that breakout hits soon, then AVP will set up to re-test or possibly take out its next major overhead resistance levels at $17.50 to $18.
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.