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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.
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.
Evolving Systems (EVOL) is a provider of software solutions and services to the wireless, wireline and cable markets. This stock closed up 1.8% to $11.19 in Monday's trading session.
Monday's Volume: 623,000
Three-Month Average Volume: 59,439
Volume % Change: 350%
>>5 Big Stocks to Trade for Big Gains From a technical perspective, EVOL spiked higher here with heavy upside volume. This stock has been uptrending strong for the last six months, with shares moving higher from its low of $5.25 to its recent high of $11.34. During that uptrend, shares of EVOL have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of EVOL within range of triggering a near-term breakout trade. That trade will hit if EVOL manages to take out its 52-week high at $11.34 with high volume.
Traders should now look for long-biased trades in EVOL as long as it's trending above some near-term support levels at $10.50 or at $10, and then once it sustains a move or close above its 52-week high at $11.34 with volume that hits near or above 59,439 shares. If that breakout hits soon, then EVOL will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $15 to $17.
SunPower (SPWR) designs, manufactures and delivers high-performance solar electric systems worldwide for residential, commercial and utility-scale power plant customers. This stock closed up 4.66% at $30.35 in Monday's trading session.
Monday's Volume: 6.31 million
Three-Month Average Volume: 3.47 million
Volume % Change: 98%
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From a technical perspective, SPWR ripped higher here with strong upside volume. This stock has been uptrending strong for the last two months, with shares moving higher from its low of $20.61 to its intraday high of $31.19. During that move, shares of SPWR have been consistently making higher lows and higher highs, which is bullish technical price action. This move also pushed shares of SPWR into new 52-week-high territory, since the stock took out its previous 52-week high at $29.48.
Traders should now look for long-biased trades in SPWR as long as it's trending above Monday's low of $28.25 and then once it sustains a move or close above its new 52-week high at $31.19 with volume that hits near or above 3.47 million shares. If we get that move soon, then SPWR will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that move are $35 to $40.
TripAdvisor (TRIP) is an online travel company empowering users to plan and have the perfect trip. This stock closed up 1.3% at $75.01 in Monday's trading session.
Monday's Volume: 3.28 million
Three-Month Average Volume: 1.69 million
Volume % Change: 92%
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From a technical perspective, TRIP rose modestly higher here and trended back above its 50-day moving average of $74.60 with strong upside volume. This stock recently dropped sharply from its high of $79.89 to its low of $68.11. Since that drop, shares of TRIP have started to rebound sharply and test its 50-day moving average.
Traders should now look for long-biased trades in TRIP as long as it's trending above Monday's low of $72.54 and then once it sustains a move or close above Monday's high of $75.07 with volume that's near or above 1.69 million shares. If we get that move soon, then TRIP will set up to re-test or possibly take out its next major overhead resistance levels at $79.89 to its 52-week high at $82.19.
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.