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4 Stocks Spiking on Unusual 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.
Infoblox (BLOX) provides automated network control services and provides an appliance-based solution that enables dynamic networks and next-generation data centers. This stock closed up 1.8% at $21.77 on Wednesday.
Wednesday's Volume: 1.46 million
Average Volume: 511,600
Volume % Change: 177%
From a technical perspective, BLOX trended modestly higher here right above some near-term support at $20.25 with above-average volume. This move is quickly pushing shares of BLOX within range of triggering a near-term breakout trade. That trade will hit if BLOX manages to take out some near-term overhead resistance at $23 with high volume.
Traders should now look for long-biased trades in BLOX as long as it’s trending above $20.25 and then once it sustains a move or close above $23 with volume that hits near or above 511,600 shares. If that breakout triggers soon, then BLOX will set up to re-test or possibly take out its all-time high of $24.15. Any high-volume move above $24.15 could then send BLOX well north of $25 in the near future.
Trulia (TRLA) operates as a real estate search engine. This stock closed up 9.7% at $29.55 on Wednesday.
Wednesday's Volume: 688,000
Average Volume: 318,853
Volume % Change: 137%
Shares of TRLA ripped higher on Wednesday after positive news hit the wires from the Mortgage Brokers Association regarding mortgage applications and after the company announced a partnership with Midwest Real Estate Data.
From a technical perspective, TRLA ripped higher here and enter breakout territory above some near-term overhead resistance at $28.49 with above-average volume. This move has temporarily stopped the recent downtrend for TRLA, which took the stock from its high of $38.22 to its low of $23.08. Shares of TRLA held above its 50-day moving average during that recent downtrend.
Traders should now look for long-biased trades in TRLA as long as it’s trending above that key breakout level of $28.49 with strong upside volume flows. I would consider any upside volume day that registers near or above its three-month average action of 318,853 shares as bullish. If TRLA can maintain that trend, then this stock could tag $32 to $34 soon. Any high-volume move above $34 will then put $38.22 into range for shares of TRLA.
Oxford Industries (OXM) is an apparel company that designs, sources, markets and distributes products bearing the trademarks of its company-owned lifestyle brands as well as certain licensed and private label apparel products. This stock closed up 3.4% at $52.14 on Wednesday.
Wednesday's Volume: 477,000
Average Volume: 149,883
Volume % Change: 245%
From a technical perspective, OXM soared higher here and enter breakout territory above some near-term overhead resistance at $51.47 with above-average volume. This stock has been uptrending strong for the last few weeks, with shares moving higher from its low of $42.19 to its intraday high of $52.33. During that move, shares of OXM have been consistently making higher lows and higher highs, which is bullish technical price action.
Traders should now look for long-biased trades in OXM as long as it’s trending above that key near-term breakout level of $51.47 with strong upside volume flows. I would consider any upside volume day that registers near or above its three-month average action of 149,883 shares as bullish. If OXM can maintain that trend, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $55 to $56.81.
Impax Laboratories (IPXL) is a technology-based specialty pharmaceutical company focused on the development and commercialization of bioequivalent and brand-name pharmaceuticals, utilizing its controlled-release and other in-house development. This stock closed up 6.5% at $15.77 on Wednesday.
Wednsday's Volume: 3.68 million
Average Volume: 829,878
Volume % Change: 307%
From a technical perspective, IPXL jumped higher here off its 52-week low of $14.41 with massive upside volume. This stock recently gapped down from around $20 to $14.48 with heavy downside volume. That move has now pushed shares of IPXL into oversold territory, since its relative strength index has a current reading of 26.46. Oversold can always get more oversold, but it’s also an area where a stock can experience a powerful bounce higher from.
Traders should now look for long-biased trades in IPXL as long as it’s trending above its gap down day high of $15.48 and then once it sustains a move or close above Wednesday high of $15.78 with volume that hits near or above 829,878 shares. If that move triggers soon, then IPXL will set up to re-fill some of its recent gap down zone that started near $20. Some possible targets if IPXL gets into that gap with volume are $17 to $18.
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.