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3 Stocks Spiking 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.
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 recently. Repligen
Repligen (RGEN), a life sciences company, develops, manufactures and markets consumable bioprocessing products for use in the production of monoclonal antibodies and other biologic drugs. This stock closed up 6.3% at $14.10 in Monday's trading session.
Monday's Volume: 1.11 million
Three-Month Average Volume: 512,171
Volume % Change: 108%
From a technical perspective, RGEN spiked sharply higher here and broke out above some near-term overhead resistance at $13.81 with strong upside volume. This stock has been uptrending a bit over the last few weeks, with shares moving higher from its low of $12.04 to its intraday high of $14.34. During that move, shares of RGEN have been consistently making higher lows and higher highs, which is bullish technical price action. Market players should now look for a continuation move to the upside in the short-term if RGEN manages to take out Monday's high of $14.34 to its 50-day moving average at $14.71 with strong volume.
Traders should now look for long-biased trades in RGEN as long as it's trending above Monday's low of $13.04 or above more support at $12.06 and then once it sustains a move or close above $14.34 to $14.71 with volume that this near or above 512,171 shares. If we get that move soon, then RGEN will set up to re-test or possibly take out its next major overhead resistance levels at $15.73 to its 52-week high at $17.26.
Cresud (CRESY), an agricultural company, produces basic agricultural commodities in Brazil and other Latin American countries. This stock closed up 10.6% at $10.28 in Monday's trading session.
Monday's Volume: 139,000
Three-Month Average Volume: 54,660
Volume % Change: 195%
From a technical perspective, CRESY exploded higher here right above its 50-day moving average of $9.24 with strong upside volume. This spike higher on Monday pushed shares of CRESY into breakout territory, after the stock took out some near-term overhead resistance levels at $9.64 to $9.83 and then $10.13. Market players should now look for a continuation move higher in the short-term if CRESY manages to take out Monday's high of $10.43 with strong volume.
Traders should now look for long-biased trades in CRESY as long as it's trending above $9.60 or above its 50-day at $9.24 and then once it sustains a move or close above $10.43 with volume that hits near or above 54,660 shares. If that move gets started soon, then CRESY will set up to re-test or possibly take out its next major overhead resistance levels at $11.45 to $11.55, or its 52-week high of $11.80.
Kellogg (K), together with its subsidiaries, manufactures and markets ready-to-eat cereal and convenience food products primarily in the U.S. and the U.K. This stock closed up 2% at $65.06 in Monday's trading session.
Monday's Volume: 3.71 million
Three-Month Average Volume: 2.16 million
Volume % Change: 86%
From a technical perspective, K spiked higher here right above some near-term support at $63 with above-average volume. This stock has been uptrending strong for the last two months, with shares moving higher from its low of $55.27 to its recent high of $66.77. During that move, shares of K have been consistently making higher lows and higher highs, which is bullish technical price action. This spike higher on Monday is starting to push shares of K within range of triggering a near-term breakout trade. That trade will hit if K manages to take out Monday's high of $65.82 to $66.77 and then once it clears its 52-week high of $66.98 with high volume.
Traders should now look for long-biased trades in K as long as it's trending above Monday's low of $63.68 or above $63 and then once it sustains a move or close above those breakout levels with volume that's near or above 2.16 million shares. If that breakout hits soon, then K will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $70 to $75. 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.