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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.
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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.
Brightcove (BCOV) is a global provider of cloud-based solutions for publishing and distributing professional digital media. This stock is trading up 7% at $13.89 in recent trading.
Today’s Volume: 827,000
Average Volume: 307,273
Volume % Change: 272%
Shares of BCOV are ripping higher today after the company announced that Discovery Networks International has adopted its App Cloud mobile platform to develop and manage dual-screen catch-up TV services.
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From a technical perspective, BCOV is trending to the upside here back above its 50-day moving average of $12.96 with heavy upside volume. This move is quickly pushing BCOV within range of triggering a near-term breakout trade. That trade will hit once BCOV manages to take out some near-term overhead resistance levels at $14.48 to $15.25 with high volume.
Traders should now look for long-biased trades in BCOV as long as it’s trending above its 50-day at $12.96, and then once it sustains a move or close above those breakout levels with volume that hits near or above 307,273 shares. If that breakout triggers soon, then look for BCOV to re-test or possibly take out its next major overhead resistance levels at $16.53 to $17.17. If those levels were to get taken out with volume, then BCOV could trade up towards $19 to $20. Netflix
Netflix (NFLX) is an Internet subscription service streaming television shows and movies. This stock is trading up 7.2% at $60.58 in recent trading.
Today’s Volume: 6.6 million
Average Volume: 5.1 million
Volume % Change: 114%
Shares of NFLX are soaring today after Citigroup analyst Mark Maheny said the company’s valuation is highly reasonable and he keeps his buy rating and price target of $120 on the stock.
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From a technical perspective, NFLX is ripping higher here back above its 50-day moving average of $58.72 with above-average volume. This move is quickly pushing NFLX within range of triggering a near-term breakout trade. That trade will hit once NFLX manages to clear some near-term overhead resistance at $59.72 to $61.42 with high volume.
At last check, NFLX has hit an intraday high of $61.65 and volume is well above its three-month average of 5,061,490 shares. If that breakout triggers soon, then NFLX will have a great chance to re-test or possibly take out its next major overhead resistance level at $66.65 a share. Any high-volume move over $66.65 will then give NFLX a chance to get into a gap from back in July that started near $80. Ryanair
Ryanair (RYAAY) operates a low-cost, scheduled-passenger airline serving short-haul, point-to-point routes between Ireland, the United Kingdom, Continental Europe and Morocco. This stock is trading up 1.7% at $33.44 in recent trading.
Today’s Volume: 323,000
Average Volume: 242,298
Volume % Change: 123%
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From a technical perspective, RYAAY is ripping higher here with above-average volume, and it’s now pushing into breakout territory with the stock moving above some near-term overhead resistance at $33.11.
Traders should now look for long-biased trades in RYAAY as long as it’s trending above its 200-day at $31.90, and then once it sustains a move or close above $33.11 with volume that’s near or above 242,298 shares. If RYAAY can sustains that trend, then this stock will have an excellent chance of re-testing or possibly taking out its next major overhead resistance levels at $35.78 to $37.12.
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.
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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 stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.