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3 Stocks Spiking on Big 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.
Fifth & Pacific Companies
Fifth & Pacific Companies (FNP) is engaged in designing and marketing a range of apparel and accessories. This stock is trading up 7.3% at $19.97 in recent trading.
Today’s Volume: 4.50 million
Average Volume: 1.94 million
Volume % Change: 271%
Shares of FNP are trending higher here after the Wall Street Journal reported the company is considering selling its Lucky Brand and Juicy Couture labels.
From a technical perspective, FNP is ripping higher here right above its 50-day moving average of $17.55 with heavy upside volume. This move has started to push shares of FNP into breakout territory and new 52-week-high territory, since the stock has taken out some near-term overhead resistance at $19.49. At last check, shares of FNP have hit an intraday high of $20.37 and volume is well above its three-month average action of 1.94 million shares.
Traders should now look for long-biased trades in FNP as long as it’s trending above $19.49, and then once it sustains a move or close above its 52-week high of $20.37 with volume that hits near or above 1.94 million shares. If that breakout hits soon, then FNP will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that move are $23 to $25.
Time Warner (TWX) is a media and entertainment company whose businesses include interactive services, cable systems, filmed entertainment, television networks and publishing. This stock is trading up 1% at $58.18 in recent trading.
Today’s Volume: 5.91 million
Average Volume: 6.32 million
Volume % Change: 57%
From a technical perspective, TWX is uptrending here and hitting a new 52-week high with decent upside volume. This stock has broken out above some near-term overhead resistance at $57.85 and volume is trending just a bit below its three-month average action of 6.32 million shares.
Traders should now look for long-biased trades in TWX as long as it’s trending above today’s low of $57.77 or above that breakout level of $57.85 with strong upside volume flows. I would consider any upside volume day that registers near or above 6.32 million shares as bullish. If TWX can maintain that trend, then this stock will have a strong chance of trending north of $60 in the near future.
Impax Laboratories (IPXL) is a technology-based specialty pharmaceutical company focused on the development and commercialization of bioequivalent and brand-name pharmaceuticals, utilizing its controlled-release and other in-house development. This stock is trading up 3.6% at $15.85 in recent trading.
Today’s Volume: 899,000
Average Volume: 1.06 million
Volume % Change: 50%
From a technical perspective, IPXL is ripping higher here right off some near-term support at $15.05 with decent upside volume. This move is quickly pushing shares of IPXL within range of triggering a major breakout trade. That trade will hit if IPXL can manage to take out some near-term overhead resistance levels at $16 to $16.97 with high volume.
Traders should now look for long-biased trades in IPXL as long as it’s trending above some key near-term support at $15.05 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.06 million shares. If that breakout triggers soon, then IPXL will set up to re-fill some of its previous gap down zone from March that started near $20.
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.