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4 High-Volume Stocks With Relative Strength - 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. Many times when above average volume moves into 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.
Bazaarvoice (BV) is provider of social commerce solutions that help its clients capture, display and analyze online word of mouth, including consumer-generated ratings and reviews, questions and answers, stories, recommendations, photographs, videos and other content about its clients’ brands, products or services. This stock is trading up 5.1% at $16.35 in recent trading.
Today’s Volume: 2.7 million
Average Volume: 193,606
Volume % Change: 3,107%
Shares of BV are spiking higher today after the company priced 8.5 million shares of common stock at $15.40 per share in a follow on public offering.
From a technical perspective, BV is bouncing hard here right off some near-term support at $15.38 with heavy volume. In fact, every time this stock has pulled back in the last four months to around $15.40 to $14.50, it has found buying interest from the bulls.
Traders should now look for long-biased trades once BV clears its 50-day moving average of $17.11 with high volume. Look for a sustained move or close above $17.11 with volume that registers near or above 193,606 shares. If we get that action soon, then BV could continue to spike towards its next significant overhead resistance levels at $18.88 to $20.20.
On the flipside, I would avoid BV or look for short-biased trades if it fails around its 50-day.
Intel (INTC) designs and manufactures integrated digital technology platforms. A platform consists of a microprocessor and chipset. This stock is trading up 2.8% at $26.11 in recent trading.
Today’s Volume: 38 million
Average Volume: 38.5 million
Volume % Change: 116%
From a technical perspective, INTC is ripping higher here right off some near-term support at $25 with decent volume. This move has also pushed INTC back above its 200-day moving average of $25.66, and right near its 50-day moving average of $26.27.
Traders should now look for long-biased trades once INTC clears its 50-day moving average with high volume. Look for a sustained move or close above $26.27 with volume that’s near or above 38.5 million shares. At last check, INTC has hit an intraday high of $26.22 and volume is just starting to register above 38 million shares traded. If that breakout above the 50-day triggers soon, then INTC will have a great chance of re-testing and possibly taking out its next significant overhead resistance levels at $26.86 to $27.75/$27.95. Any high-volume move over $27.95 will then setup INTC to re-visit its May high of $29.27.
Oplink Communications (OPLK) designs, manufactures and sells optical networking components and subsystems. This stock is trading up 3.9% at $13.35 in recent trading.
Today’s Volume: 106,000
Average Volume: 117,494
Volume % Change: 84%.
From a technical perspective, OPLK is ripping higher here back above its 50-day moving average of $13.17 here with decent volume. Any time a stock takes out its 50-day moving average with high volume, its technically bullish price action.
Traders should now look for long-biased trades as long as OPLK is trending above its 50-day with strong upside volume flows. I would consider any upside volume day that registers near or above 117,494 shares as bullish. At last check, OPLK has hit an intraday high of $13.51 and volume is closing in on surpassing its three-month average action of 117,494 shares. If OPLK can maintain a high-volume trend above its 50-day, then this stock will setup for an even bigger breakout trade.
That trade will trigger once OPLK takes out some near-term overhead resistance at $13.61 to $13.80 with high volume. If that breakout triggers soon, then OPLK could easily skyrocket back towards its 200-day moving average of $15.87, or possibly even higher.
Littelfuse (LFUS) is a supplier of circuit protection products for the electronics industry, providing a line of circuit protection solutions to worldwide customers. This stock is trading up 1.4% at $53.84 in recent trading.
Today’s Volume: 122,000
Average Volume: 107,662
Volume % Change: 108%.
From a technical perspective, LFUS is bouncing modestly here right near its 200-day moving average of $52.58 with above average volume. The 200-day moving average is often an area that the bulls will come in and defend a stock at after it has sold off hard. Shares of LFUS have been hammered by the bears during the last three months, with shares dropping from $64.68 to today’s low of $53.04.
Traders can now look for long-biased trades in LFUS since the rebound potential off the 200-day is strong if it holds. Look for a sustained move or close for LFUS off its 200-day moving average of $52.58 with volume that’s near or above 107,662 shares. At last check, LFUS has held its 200-day today and volume is already above its three-month average action of 107,662 shares. If LFUS can hold the 200-day, then this stock could bounce back to its 50-day at $57.36.
On the flipside, I would avoid this stock or look for short-biased trades if LFUS fails to hold its 200-day and then takes out some previous support at $51.64 with heavy volume.
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 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.