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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.
Domino's Pizza (DPZ) is engaged in retail sales of food through Domino's Pizza stores, sales of equipment and supplies to Domino's Pizza stores and receipt of royalties from domestic and international Domino's Pizza franchisees. This stock closed up 2.6% at $61.01 in Wednesday's trading session.
Wednesday's Volume: 2.13 million
Three-Month Average Volume: 932,295
Volume % Change: 167%
From a technical perspective, DPZ bounced higher here right off its 50-day moving average of $59.80 with above-average volume. This stock recently plunged lower from $64.45 to under its 50-day moving average with heavy downside volume. Shares of DPZ have now started to recover and trend back above its 50-day, which could be signaling the stock is ready to resume its uptrend.
Traders should now look for long-biased trades in DPZ as long as it's trending above its 50-day at $59.80 and then once it sustains a move or close above Wednesday's high of $61.24 with volume that this near or above 932,295 shares. If we see that move soon, then DPZ will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $64.45. Any high-volume move above that level will then give DPZ a chance to tag $70.
ManpowerGroup (MAN) offers permanent, temporary and contract recruitment services, assessment and selection services, training and development services and outsourcing services, among others. This stock closed up 0.95% at $66.61 in Wednesday's trading session.
Wednesday's Volume: 1.14 million
Three-Month Average Volume: 554,848
Volume % Change: 112%
From a technical perspective, MAN trended higher here right above some near-term support at $66 with above-average volume. This move pushed shares of MAN into new 52-week-high territory, which is bullish technical price action. This stock also flirted with its three-year high of $66.79, before closing just below that level at $66.61.
Traders should now look for long-biased trades in MAN as long as it's trending above some near-term support levels at $66 or $65 and then once it sustains a move or close above Wednesday's high of $67.22 with volume that's near or above 554,848 shares. If we get that move soon, then MAN 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 $70 to $75.
Spectranetics (SPNC) develops, manufactures, markets and distributes single-use medical devices used in minimally invasive procedures within the cardiovascular system. This stock closed up 3.3% at $19.50 in Wednesday's trading session.
Wednesday's Volume: 543,000
Three-Month Average Volume: 298,539
Volume % Change: 90%
From a technical perspective, SPNC ripped higher here right off its 50-day moving average of $18.96 with above-average volume. This move is quickly pushing shares of SPNC within range of triggering a near-term breakout trade. That trade will hit if SPNC manages to take out some near-term overhead resistance levels at $19.60 to $20 with high volume. Shares of SPNC hit an intraday high on Wednesday of $19.62 and volume was well above its three-month average action of 298,539 shares.
Traders should now look for long-biased trades in SPNC as long as it's trending above its 50-day at $18.96 or above some more near-term support at $18.37 and then once it sustains a move or close above those breakout levels with volume that's near or above 298,539 shares. If that breakout hits soon, then SPNC will set up to re-test or possibly take out its 52-week high at $20.99. Any high-volume move above that level will then give SPNC a chance to tag $25.
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.