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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 Set to Soar on Bullish Earnings With that in mind, let's take a look at several stocks rising on unusual volume recently. First Solar
First Solar (FSLR) provides solar energy solutions worldwide. This stock closed up 3.9% at $65.39 in Wednesday's trading session.
Wednesday's Volume: 7.50 million
Three-Month Average Volume: 4.48 million
Volume % Change: 114%
From a technical perspective, FSLR gapped up notably higher here with strong upside volume. This move briefly pushed shares of FSLR back above its 50-day moving average of $66.19, before it pulled back and closed just below that level at $65.39. Market players should now look for a continuation move higher in the short-term if FSLR can manage to take out Wednesday's intraday high of $66.88 with strong upside volume flows.
Traders should now look for long-biased trades in FSLR as long as it's trending above Wednesday's low of $63.58 and then once it sustains a move or close above $66.88 with volume that hits near or above 4.48 million shares. If that move gets started soon, then FSLR will set up to re-test or possibly take out its next major overhead resistance levels at $70 to $72.41, or even around $74.
Masonite International (DOOR) designs, manufactures and sells interior and exterior doors for the residential new construction; the residential repair, renovation and remodeling; and the non-residential building construction markets worldwide. This stock closed up 2.4% to $52.78 in Wednesday's trading session.
Wednesday's Volume: 673,000
Three-Month Average Volume: 190,403
Volume % Change: 305%
From a technical perspective, DOOR trended higher here right above some near-term support at $51.31 with strong upside volume. This spike higher on Wednesday briefly pushed shares of DOOR back above its 200-day moving average of $52.97, before it closed just below that level at $52.78. Shares of DOOR are now starting to move within range of triggering a near-term breakout trade. That trade will hit if DOOR manages to take out some near-term overhead resistance levels at $53.38 to its 50-day moving average of $54.26 with high volume.
Traders should now look for long-biased trades in DOOR as long as it's trending above support at $51.31 and then once it sustains a move or close above those breakout levels with volume that hits near or above 190,403 shares. If that move gets started soon, then DOOR will set up to re-test or possibly take out its next major overhead resistance levels around $57 to $59.
Arch Capital Group
Arch Capital Group (ACGL) provides insurance and reinsurance solutions worldwide. This stock closed up 0.88% at $57.60 in Wednesday's trading session.
Wednesday's Volume: 1.25 million
Three-Month Average Volume: 471,820
Volume % Change: 199%
From a technical perspective, ACGL spiked modestly higher here right off its 50-day moving average of $57.01 with above-average volume. This stock has been trending sideways and consolidating for the last two months and change, with shares moving between $55.61 on the downside and $58.74 on the upside. This spike higher on Wednesday is starting to push shares of ACGL within range of trigger a big breakout trade above the upper-end of its recent sideways trading chart pattern. That trade will hit if ACGL manages to take out some key near-term overhead resistance levels at $58.04 to $58.74 with high volume.
Traders should now look for long-biased trades in ACGL as long as it's trending above its 50-day at $57.01 or above its 200-day at $56.24 and then once it sustains a move or close above those breakout levels with volume that this near or above 471,820 shares. If that breakout kicks off soon, then ACGL will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $59.78. Any high-volume move above $59.78 will then give ACGL a chance to trend well north of $60. 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.