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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.
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.
E2open (EOPN), which develops, operates and markets an integrated cloud-based platform for supply chain management, is trading up 5.7% at $18.87 in recent trading.
Today's Volume: 245,000
Average Volume: 194,810
Volume % Change: 158%
From a technical perspective, EOPN is ripping higher here right above its 200-day moving average at $16.64 with above-average volume. This move has started to push shares of EOPN into breakout territory, since the stock has taken out some near-term overhead resistance at $18.22.
Traders should now look for long-biased trades in EOPN as long as it's trending above today's low of $17.40 or above $18 and then once it sustains a move or close above today's high of $18.94 with volume that hits near or above 194,810 shares. If we get that move soon, then EOPN will set up to re-test or possibly take out its next major overhead resistance levels $20.85 to its all-time high at $22. Any high-volume move above $22 will then give EOPN a chance to tag $25.
Travelzoo (TZOO), a global Internet media company, informs over 24 million subscribers worldwide, as well as millions of Web site users, about the best travel and entertainment deals available from thousands of companies. This stock is trading up 6.4% at $31.86 in recent trading.
Today's Volume: 172,000
Average Volume: 95,662
Volume % Change: 234%
From a technical perspective, TZOO is spiking sharply higher here above some near-term support at $29 with above-average volume. This stock has firmly pushed into breakout territory, since it has taken out some near-term overhead resistance at $29.80. This move has also pushed TZOO into new 52-week-high territory, since the stock has hit an intraday high of $32.39.
Traders should now look for long-biased trades in TZOO as long as it's trending above $29 or above $29.80 and then once it sustains a move or close above its 52-week high at $32.39 with volume that this near or above 95,662 shares. If we get that move soon, then TZOO will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $35 to $40.
Keep in mind that TZOO reports earnings on Thursday, so look to play that upside before or after its earnings numbers are out when you see if an uptrend develops.
Telephone & Data Systems
Telephone & Data Systems (TDS) is a telecommunications service company with wireless operations. This stock is trading up 5.8% to $25.59 in recent trading.
Today's Volume: 1 million
Average Volume: 592,548
Volume % Change: 189%
From a technical perspective, TDS is soaring higher here and gapping up with above-average volume. This move has started to push shares of TDS into breakout territory, since the stock has cleared some near-term overhead resistance at $25.30. Shares of TDS are now quickly moving within range of triggering another major breakout trade. That trade will hit if TDS manages to take out some near-term overhead resistance at $26.17 and then once it clears its 52-week high at $26.99 with high volume.
Traders should now look for long-biased trades in TDS as long as it's trending above today's low of $24.85 and then once it sustains a move or close above those breakout levels with volume that hits near or above 592,548 shares. If that breakout triggers soon, then TDS will set up to re-test or possibly take out its next major overhead resistance levels at $29.39 to $32.
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.
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.