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3 Stocks Soaring on Unusual Volume - views
WINDERMERE, Fla. (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.
CAI International (CAP)
This is an intermodal freight container leasing and management company, which operates its business through two segments: container leasing and container management. This stock is trading up 5.2% at $21.19 in recent trading.
Today's Volume: 847,000
Average Volume: 148,040
Volume % Change: 1195%
From a technical perspective, CAP is ripping higher here right off its 200-day moving average of $20.04 with heavy upside volume. This move is quickly pushing CAP within range of triggering a near-term breakout trade. That trade will hit once CAP takes out some near-term overhead resistance at its 50-day of $21.26 and then more overhead resistance at $22 with high volume.
Traders should now look for long-biased trades in CAP as long as it's trending above its 200-day at $20.04, and then once it sustains a move or close above those breakout levels with volume that hits near or above 148,040 shares. If that breakout triggers soon, then CAP will set up to re-test or possibly take out its next major overhead resistance levels at $23 to $23.55.
Apogee Enterprises (APOG)
This company provides technologies, involving the design and development of value-added glass products, services and systems. This stock is trading up 3.2% at $24.49 in recent trading.
Today's Volume: 299,000
Average Volume: 178,329
Volume % Change: 196%
Shares of APOG are trending higher today after the company said third quarter revenue rose by 9% to $190.4 million and net earnings surged 45% to 28 cents per share.
From a technical perspective, APOG is gapping higher here right above some near-term support at $23 with above-average volume. This move has started to push APOG into breakout territory, since the stock has cleared some near-term overhead resistance levels at $23.50 to $23.89. At last check, APOG has hit an intraday high of $24.86 and volume is well above its three-month average action of 173,329 shares. This move has also pushed APOG into new 52-week high territory, which is bullish technical price action.
Traders should now look for long-biased trades in APOG as long as it's trending above $23 to $23.50 with strong upside volume flows. I would consider any upside volume day that registers near or above its three-month average action of 178,329 shares as bullish. If APOG can maintain that trend, then this stock has a great chance of tagging $30 in the near future.
This is a developer and supplier of custom-designed human interface solutions that enable people to interact easily and intuitively with a variety of mobile computing, communications, entertainment, and other electronic devices. This stock is trading up 4% at $29.49 in recent trading.
Today's Volume: 895,000
Average Volume: 442,442
Volume % Change: 234%
From a technical perspective, SYNA is gapping higher here back above its 200-day moving average of $28.25 with above-average volume. This stock has been uptrending strong for the last two months, with shares soaring from a low of $22.60 to its recent high of $30.36. During that move, shares of SYNA have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed SYNA within range of triggering a near-term breakout trade. That trade will hit once SYNA manages to take out some near-term overhead resistance levels at $30.50 to $31.56 with high volume.
Traders should now look for long-biased trades in SYNA as long as it's trending above its 200-day at $28.25, and then once it sustains a move or close above those breakout levels with volume that hits near or above 442,442 shares. If that breakout triggers soon, then SYNA will set up to re-test or possibly take out its next major overhead resistance levels at $33 to $35.
To see more stocks rising on unusual volume, check out the Stocks Rising On Unusual Volume portfolio on Stockpickr.
-- Written by Roberto Pedone in Winderemere, Fla.
At the time of publication, author had no positions in stocks mentioned.
Roberto Pedone, based out of Windermere, Fla., 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.