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4 Stocks Spiking on Big Volume - 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. 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.
Clovis Oncology (CLVS) is a biopharmaceutical company focused on acquiring, developing and commercializing innovative anti-cancer agents in the U.S., Europe and additional international markets. This stock is trading up 3.4% at $31.03 in recent trading.
Today’s Volume: 147,000
Average Volume: 93,464
Volume % Change: 154%
From a technical perspective, CLVS is trending higher here and breaking out above some near-term overhead resistance at $29.53 with above-average volume. This move has pushed shares of CLVS into new 52-week-high and all-time-high territory, which is bullish technical price action.
Traders should now look for long-biased trades in CLVS as long as it’s trending above $29.53 or above today’s low of $29.97 and then once it sustains a move or close above today’s high of $31.08 with volume that hits near or above 93,464 shares. If that breakout hits soon, then CLVS will enter new all-time high territory and possibly have a chance of tagging $34 to $35.
JDS Uniphase (JDSU) is a provider of communications test and measurement solutions and optical products for telecommunications service providers, cable operators, and network equipment manufacturers. This stock is trading up 5.2% to $14.04 in recent trading.
Today’s Volume: 6.68 million
Average Volume: 4.95 million
Volume % Change: 121%
From a technical perspective, JDSU is trending higher here above some past resistance at $13.50 with above-average volume. This stock has been uptrending for the last few weeks, with shares moving higher off its 200-day moving average at $12.36 to its intraday high of $14.24. During that uptrend, shares of JDSU have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of JDSU within range of triggering a near-term breakout trade. That trade will hit if JDSU manages to take out its 50-day moving average at $14.35 with high volume.
Traders should now look for long-biased trades in JDSU as long as it’s trending above $13.50, and then once it sustains a move or close above its 50-day at $14.35 with volume that hits near or above 4.95 million shares. If that breakout hits soon, then JDSU will set up to re-test or possibly take out its next major overhead resistance levels at $15.55 to $15.63. Any high-volume move above $15.63 will then push JDSU into new 52-week-high territory. That move will put $17 into range for shares of JDSU.
Greenhill (GHL) is an investment bank providing financial advice on significant mergers, acquisitions, restructurings, financings and capital raising to corporations, partnerships, institutions and governments. This stock is trading up 1.4% at $51.86 in recent trading.
Today’s Volume: 357,000
Average Volume: 266,107
Volume % Change: 120%
From a technical perspective, GHL is bouncing higher here right off some near-term support at $50 with above-average volume. This stock has been downtrending badly for the last month and change, with shares moving lower from its high of $60.84 to its recent low of $49.23. During that move, shares of GHL have been consistently making lower highs and lower lows, which is bearish technical price action. That said, GHL has started to bounce off its recent lows and it’s now quickly moving within range of triggering a near-term breakout trade. That trade will hit if GHL manages to take out some near-term overhead resistance levels at $52 to $53.82 with high volume.
Traders should now look for long-biased trades in GHL as long as it’s trending above today’s low of $51.06, and then once it sustains a move or close above those breakout levels with volume that hits near or above 266,107 shares. If that breakout triggers soon, then GHL will set up to re-test or possibly take out its next major overhead resistance levels at $56 to its 50-day moving average at $57.33.
SM Energy (SM) is an independent energy company engaged in the acquisition, exploration, development and production of oil, gas and NGLs in onshore North America. This stock is trading up 4.5% to $61.62 in recent trading.
Today’s Volume: 1.37 million
Average Volume: 937,227
Volume % Change: 123%
From a technical perspective, SM is ripping higher here right above its 50-day moving average of $58.39 with above-average volume. This move has started to push shares of SM into breakout territory, since the stock has moved above some near-term overhead resistance at $60.31. This move is quickly pushing shares of SM within range of triggering another major breakout trade. That trade will hit if SM manages to take out some near-term overhead resistance at $62.26 with high volume. At last check, SM has hit an intraday high of $62.48 with strong volume, so the stock is already starting to flirt with that breakout.
Traders should now look for long-biased trades in SM as long as it’s trending above near-term support at $60 or above that first breakout level at $60.31 and then once it sustains a move or close above $62.26 to $62.48 with volume that hits near or above 937,227 shares. If that breakout hits soon, then SM will set up to re-test or possibly take out its 52-week high at $68.77.
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 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.