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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.
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.
Sothebys (BID) is an auctioneer of authenticated fine art, antiques and decorative art, jewelry and collectibles. This stock closed up 3.6% at $45.91 in Wednesday's trading session.
Wednesday's Volume: 2.62 million
Three-Month Average Volume: 1.23 million
Volume % Change: 121%
From a technical perspective, BID ripped higher here right off some near-term support at $44 and briefly into breakout territory above resistance at $45.98 with high strong upside volume. At last check, BID closed just below that breakout level of $45.98 and below its intraday high and new 52-week high of $46.32. This stock has been uptrending strong for the last three months and change, with shares soaring higher from its low of $32.95 to its high of $46.32. During that move, shares of BID have been consistently making higher lows and higher highs, which is bullish technical price action.
Traders should now look for long-biased trades in BID as long as it's trending above support at $44 or above some more key near-term support at $42.41 and then once it sustains a move or close above its new 52-week high at $46.32 with volume that hits near or above 1.23 million shares. If we get that move soon, then BID will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $50 to $55.
JinkoSolar (JKS) is a solar power product manufacturer. This stock closed up 3.6% to $14.21 in Wednesday's trading session.
Wednesday's Volume: 2.86 million
Three-Month Average Volume: 745,439
Volume % Change: 311%
Shares of JKS jumped higher on Wednesday after the company said shipments of solar modules rose 44.5% from the first quarter to 489.2 MW, and revenue jumped 51.7% to $287.6 million.
From a technical perspective, JKS trended up here with heavy upside volume. This stock has been uptrending strong for the last four months, with shares soaring higher from its low of $3.96 to its intraday high of $15.62. During that uptrend, shares of JKS have been making mostly higher lows and higher highs, which is bullish technical price action. That move briefly pushed shares of JKS into breakout and new 52-week-high territory, since the stock hit an intraday high of $15.62.
Traders should now look for long-biased trades in JKS as long as it's trending above some near-term support at $13.50 or at $13 and then once it sustains a move or close above Wednesday's high of $15.62 with volume that hits near or above 745,439 shares. If we get that move soon, then JKS will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $17.50 to $20.
NRG Energy (NRG) is a wholesale power generation and retail electricity company that produces and delivers energy and energy services in major competitive power markets in the U.S. This stock closed up 3.9% at $26.52 in Wednesday's trading session.
Wednesday's Volume: 7.31 million
Three-Month Average Volume: 3.67 million
Volume % Change: 110%
From a technical perspective, NRG spiked sharply higher here right above some near-term support at $25.24 and right above its 200-day moving average at $24.79 with strong upside volume. This move is quickly pushing shares of NRG within range of triggering a near-term breakout trade. That trade will hit if NRG manages to take out its 50-day moving average at $26.88 to more near-term overhead resistance at $27.07 with high volume.
Traders should now look for long-biased trades in NRG as long as it's trending above its 200-day at $24.79 and then once it sustains a move or close above those breakout levels with volume that's near or above 3.67 million shares. If that breakout triggers soon, then NRG will set up to re-test or possibly take out its next major overhead resistance levels at $27.50 to $28.50. Any high-volume move above those levels will then give NRG a chance to tag its 52-week high at $29.19.
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.
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.