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5 Stocks Rising 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. 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.
Let's take a look at several stocks rising on unusual volume today.
Research In Motion
Research In Motion (RIMM) is a designer, manufacturer and marketer of wireless solutions for the worldwide mobile communications market. This stock is trading up 7.3% at $14.74 in recent trading.
Today’s Volume: 63
Average Volume: 19.9 million
Volume % Change: 379%
From a technical perspective, RIMM is ripping higher today on monster volume, and the stock is now trading within range of some key technical levels. That first level is its 50-day moving average of $14.81, and that second level is some near-term overhead resistance at $14.75.
Traders should look for long-biased trades if RIMM can manage to close above both of those levels. If we get that action, then RIMM can easily trade up towards its next significant overhead resistance levels at $15.45 to $17 in the near future.
Research In Motion shows up on a recent list of 10 Stocks Owned by the Best Fund Managers.
Patrick Industries (PATK) is a manufacturer and distributor of building products and materials to the recreational vehicle and manufactured housing industries. In addition, it is a supplier to certain other industrial markets, such as kitchen cabinet, household furniture, fixtures and commercial furnishings, marine, and other industrial markets. The stock is trading up 6.9% at $12.10 in recent trading.
Today’s Volume: 121,000
Average Volume: 66,554
Volume % Change: 106%
From a technical perspective, PATK is soaring higher today on above-average volume, and the stock is now trading within range of triggering a near-term breakout trade. That trade will hit once PATK can sustain a high-volume move and close above some near-term overhead resistance at $12.15. If we get that action today or soon, look for PATK to continue its uptrend towards $15 in the near future.
Traders should look for long-biased trades if PATK is trending over $12.15 and simply avoid this stock if it trends below some near-term support at $11.50 to $11.42.
Verint Systems (VRNT) is engaged in Actionable Intelligence solutions and value-added services.. This stock is trading up 2.7% at $32.58 in recent trading.
Today’s Volume: 206,000
Average Volume: 195,271
Volume % Change: 50%
From a technical perspective, VRNT is rising modestly today on above average volume, and the stock is starting to break out above some past overhead resistance at $31.63.
Traders should continue to look for long-biased trades in VRNT as long as it’s trending above $31.63 with strong upside volume. If we continue to see that strength, look for VRNT to make a run at its next major overheard resistance levels at $34 to $36 in the near future.
Patterson Companies (PDCO) is a provider of learning and talent management solutions providing a set of People Cloud Applications that include enterprise learning, talent management, testing and assessment and collaboration solutions delivered through the Saba People Cloud. The stock is trading up 1.4% at $33.40 in recent trading.
Today’s Volume: 871,000
Average Volume: 689,574
Volume % Change: 85%
From a technical perspective, PDCO is advancing modestly today on above average volume. This move is quickly pushing PDCO within range of triggering a major breakout trade. That trade will hit once PDCO can take out some overhead resistance at $33.51 to $33.80 with high-volume.
Traders should now look for long biased trades if PDCO can sustain a move and close above those levels on volume that’s near or well above 689,574 shares. If we get that action soon, look for PDCO to rip higher towards its next significant overhead resistance level at $36.50 in the near future.
Yandex (YNDX) is a provider of internet services, headquartered in the Russian Federation. The stock is trading up 4% at $26.34 in recent trading.
Today’s Volume: 2.3 million
Average Volume: 1.4 million
Volume % Change: 84%
From a technical perspective, YNDX has started to move back above its 200-day moving average of $25.53 today on heavy volume. This move in YNDX is also follow through strength from when the stock recently broke out above $23.84 with strong volume.
Traders should continue to look for long-biased trades in YNDX as long as it’s trending above its 200-day with strong upside volume flows. If we continue to see strength in YNDX, and the 200-day holds, then look for this stock to re-test its next significant overhead resistance levels at $29.30 to $30.
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.