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3 Stocks Rising on Unusual 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.
Zoltek (ZOLT) is engaged in the development, manufacture and marketing of carbon fibers for different applications. This stock closed up 8.7% to $15.49 in Monday's trading session.
Monday's Volume: 605,000
Three-Month Average Volume: 253,763
Volume % Change: 140%
From a technical perspective, ZOLT soared higher here right above its 50-day moving average at $13.23 with above-average volume. This stock also entered breakout territory, since the stock took out some near-term overhead resistance at $14.43. This breakout is significantly, since shares of ZOLT had been trending range bound for four months, with shares moving between $12 on the downside and just over $14 on the upside.
Traders should now look for long-biased trades in ZOLT as long as it's trending above $14.43 or $14 and then once it sustains a move or close above Monday's high at $15.50 with volume that hits near or above 253,763 shares. If we get that move soon, then ZOLT will set up to enter new 52-week-high and three-year-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $20 to $22.
Kulicke and Soffa Industries
Kulicke and Soffa Industries (KLIC) designs, manufactures and sells capital equipment and expendable tools used to assemble semiconductor devices. This stock closed up 5.7% at $11.77 in Monday's trading session.
Monday's Volume: 1.67 million
Three-Month Average Volume: 540,702
Volume % Change: 232%
From a technical perspective, KLIC spiked notably higher here right off its 200-day moving average of $11.19 and back above its 50-day moving average of $11.48 with heavy upside volume. This move is quickly pushing shares of KLIC within range of triggering a near-term breakout trade. That trade will hit if KLIC manages to take out some near-term overhead resistance levels at $12 to $12.56 with high volume.
Traders should now look for long-biased trades in KLIC as long as it's trending above its 50-day at $11.48 or its 200-day at $11.19 and then once it sustains a move or close above those breakout levels with volume that hits near or above 540,702 shares. If that breakout triggers soon, then KLIC will set up to re-test or possibly take out its next major overhead resistance levels at its 52-week high of $12.95 to its 3-year high at $13.69.
Keep in mind that KLIC is set to report earnings on July 30 before the market open. Look to play this breakout ahead of the quarter and then after as long as the stock continues to uptrend once earnings are out.
Hasbro (HAS) provides children's and family leisure time and entertainment products and services, including the design, manufacture and marketing of games and toys. This stock closed up 3.2% to $46.87 in Monday's trading session.
Monday's Volume: 3.77 million
Three-Month Average Volume: 1.33 million
Volume % Change: 197%
From a technical perspective, HAS jumped higher here back above its 50-day moving average of $45.81 with heavy upside volume. This spike has taken shares of HAS out of a recent downtrend, that saw the stock pull back from $47.84 to just under $45. Shares of HAS are now quickly moving within range of triggering a major breakout trade. That trade will hit if HAS manages to take out some near-term overhead resistance levels at $48 to its 52-week high at $48.97 with high volume.
Traders should now look for long-biased trades in HAS as long as it's trending above its 50-day at $45.81 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.33 million shares. If that breakout triggers soon, then HAS will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $55 to $57.
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.