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3 Stocks Spiking 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.
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With that in mind, let's take a look at several stocks rising on unusual volume today. Media General
Media General (MEG) is a provider of news, information and entertainment across 18 network-affiliated broadcast television stations and their associated digital media and mobile platforms. This stock closed up 2.6% at $20.64 in Wednesday's trading session.
Wednesday's Volume: 488,000
Three-Month Average Volume: 206,347
Volume % Change: 115%
From a technical perspective, MEG trended higher here with above-average volume. This stock has been uptrending strong for the last month and change, with shares moving higher from its low of $12.61 to its recent high of $20.84. During that uptrend, shares of MEG have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of MEG within range of triggering a near-term breakout trade. That trade will hit if MEG manages to take out its 52-week high at $20.84 with high volume.
Traders should now look for long-biased trades in MEG as long as it's trending above some near-term support at $19 or at $18 and then once it sustains a move or close above $20.84 with volume that this near or above 206,347 shares. If that breakout hits soon, then MEG will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are $24 to $25.
Pantry (PTRY) is an independently operated convenience store chain in the southeastern U.S. This stock closed up 8.3% at $15.50 in Wednesday's trading session.
Wednesday's Volume: 473,000
Three-Month Average Volume: 124,722
Volume % Change: 246%
From a technical perspective, PTRY ripped sharply higher here right above some near-term support at $14.05 with heavy upside volume. This move pushed shares of PTRY into breakout and new 52-week high territory, which is bullish technical price action. Market players should now look for a continuation move higher in the short-term if PTRY can manage to take out Wednesday's high of $15.50 with strong volume.
Traders should now look for long-biased trades in PTRY as long as it's trending above Wednesday's low of $14.41 or above more near-term support at $14.05 and then once it sustains a move or close above $15.50 with volume that hits near or above 124,722 shares. If we get that move soon, then PTRY will set up to re-test or possibly take out its next major overhead resistance levels at $16.36 to $18, or even $19.50. Dolby Laboratories
Dolby Laboratories (DLB) designs and manufactures video and audio products for the film production, cinema and television broadcast industries. This stock closed up 3.3% at $37.74 in Wednesday's trading session.
Wednesday's Volume: 885,000
Three-Month Average Volume: 356,684
Volume % Change: 151%
From a technical perspective, DLB spiked higher here and broke out above some near-term overhead resistance at $36.60 with above-average volume. This move also pushed shares of DLB into new 52-week high territory, since the stock flirted with its previous 52-week high at $38.36. Shares of DLB closed just below that level at $37.84. Market players should now look for a continuation move higher in the short-term if DLB can manage to take out Wednesday's high of $38.44 with strong volume.
Traders should now look for long-biased trades in DLB as long as it's trending above Wednesday's low of $36.56 or above its 50-day at $35.47 and then once it sustains a move or close above Wednesday's high of $38.44 with volume that's near or above 356,684 shares. If we get that move soon, then DLB will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are its next major overhead resistance levels at $40.50 to $45.
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.