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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.
Trex (TREX), manufactures and distributes wood and plastic composite products, and related accessories primarily for residential and commercial decking and railing applications in the U.S. This stock closed up 8.8% to $78.64 in Monday's trading session.
Monday's Volume: 458,000
Three-Month Average Volume: 231,210
Volume % Change: 135%
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From a technical perspective, TREX exploded higher here right above its 50-day moving average of $71.30 with strong upside volume. This move briefly pushed shares of TREX into breakout territory, after the stock flirted with some near-term overhead resistance at $79.90. Shares of TREX closed just below that level at $78.64. Market players should now look for a continuation move higher in the short-term if TREX manages to take out Monday's high of $80.09 to some more near-term overhead resistance at $82.50 with high volume.
Traders should now look for long-biased trades in TREX as long as it's trending above $75 and then once it sustains a move or close above $80.09 to $82.50 with volume that hits near or above 231,210 shares. If we get that move soon, then TREX will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $86.85.
Tech Data (TECD) engages in the wholesale distribution of technology products in North America, South America, Europe, the Middle East and Africa. This stock closed up 1.4% to $57.37 in Monday's trading session.
Monday's Volume: 527,000
Three-Month Average Volume: 207,315
Volume % Change: 161%
>>5 Stocks Under $10 Set to Soar From a technical perspective, TECD jumped modestly higher here with above-average volume. This move is starting to push shares of TECD within range of triggering a big breakout trade. That trade will hit if TECD manages to take out some near-term overhead resistance levels at $57.98 to $60 with high volume.
Traders should now look for long-biased trades in TECD as long as it's trending above Monday's low of $56.65 or above its 50-day at $54.95 and then once it sustains a move or close above those breakout levels with volume that hits near or above 207,315 shares. If that breakout kicks off soon, then TECD will set up to re-test or possibly take out its 52-week high at $61.99. UMB Financial
UMB Financial (UMBF), through its subsidiaries, offers various banking and other financial services in the U.S. This stock closed up 2.3% at $65.32 in Monday's trading session.
Monday's Volume: 407,473
Three-Month Average Volume: 167,479
Volume % Change: 146%
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From a technical perspective, UMBF spiked notably higher here and broke out above some near-term overhead resistance at $65 with above-average volume. This stock has been uptrending strong for the last month, with shares moving higher from its low of $55.95 to its intraday high of $65.42. During that move, shares of UMBF have been consistently making higher lows and higher highs, which is bullish technical price action. Market players should now look for a continuation move higher in the short-term if UMBF manages to take out Monday's high of $65.42 with high volume.
Traders should now look for long-biased trades in UMBF as long as it's trending above some near-term support at $63 and then once it sustains a move or close above $65.42 with volume that's near or above 167,479 shares. If that move kicks off soon, then UMBF will set up to re-test or possibly take out its 52-week high of $68.27. 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.