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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 Bargain Bin Stocks to Buy in March With that in mind, let's take a look at several stocks rising on unusual volume recently. Changeyou.com (CYOU) develops and operates online games in the People's Republic of China. This stock closed up 5.5% at $30.85 in Monday's trading session.
Monday's Volume: 781,000
Three-Month Average Volume: 344,692
Volume % Change: 165%
From a technical perspective, CYOU jumped higher here back above its 50-day moving average of $29.90 with above-average volume. This move is quickly pushing shares of CYOU within range of triggering a big breakout trade. That trade will hit if CYOU manages to take out its 200-day moving average at $31.19 and then once it clears more resistance at $31.69 with high volume.
Traders should now look for long-biased trades in CYOU as long as it's trending above Monday's low of $29.50 or above $29 and then once it sustains a move or close above those breakout levels with volume that hits near or above 344,692 shares. If that breakout gets underway soon, then CYOU will set up to re-test or possibly take out its next major overhead resistance level at $34.32. Any high-volume move above that level will then give CYOU a chance to re-fill some of its previous gap-down-day zone from last October that started at $38.
Vector Group (VGR), through its subsidiaries, engages in the manufacture and sale of cigarettes in the U.S. This stock closed up 3.7% at $20.26 in Monday's trading session.
Monday's Volume: 1.83 million
Three-Month Average Volume: 803,916
Volume % Change: 198%
From a technical perspective, VGR jumped notably higher here right above some near-term support at $18.93 with above-average volume. This move pushed shares of VGR into breakout and new 52-week-high territory, after this stock took out some near-term overhead resistance at $19.81. Shares of VGR closed in breakout territory, since the stock finished the trading session at $20.26. Traders should now look for a continuation move to the upside in the short-term for VGR if it can manage to take out Monday's high of $20.63 with strong volume.
Traders should now look for long-biased trades in VGR as long as it's trending above Monday's low of $19.37 or above more support at $18.93 and then once it sustains a move or close above $20.63 with volume that's near or above 803,916 shares. If that move kicks off soon, then VGR will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $25 to $27.
Einstein Noah Restaurant Group (BAGL), together with its subsidiaries, owns, operates, franchises and licenses bagel specialty restaurants in the U.S. This stock closed up 3.8% at $15.50 in Monday's trading session.
Wednesday's Volume: 138,000
Three-Month Average Volume: 69,123
Volume % Change: 145%
From a technical perspective, BAGL jumped higher here back above its 50-day moving average of $15.15 and right into its 200-day moving average of $15.65 with above-average volume. This move is starting to push shares of BAGL within range of triggering a major breakout trade. That trade will hit if BAGL manages to take out its 200-day at $15.65 and some more key overhead resistance levels at $15.97 to its gap-down-day high from last November a $16.25 with high volume.
Traders should now look for long-biased trades in BAGL as long as it's trending above Monday's low of $14.91 and then once it sustains a move or close above those breakout levels with volume that's near or above 69,123 shares. If that breakout starts soon, then BAGL will set up to re-fill some of its previous gap-down-day zone that started above $17. 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.