Stock Quotes in this Article: ACOM, AIXG, MLNX, NWS, QCOR

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.

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by “superinvestors.”

  • >>Also see: 5 Huge Stocks Breaking Out This Week
  • 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.

     

    WPP  WPPGY

    This company is engaged in the provision of communications services on a national, multinational and global basis. It operates from more than 2,500 offices in 107 countries, including associates. This stock is trading up 4%, at $59.03 in recent trading.

    Today’s Volume: 290,000
    Average Volume: 79,711
    Volume % Change: 659%

    From a technical perspective, WPPGY is bouncing hard here right off its 200-day moving average of $57.24 with above-average volume. Every time in the last four months when WPPGY has had a sharp spike in upside volume, this stock has trended higher afterward. Traders should now look for long-biased trades as long as WPPGY holds its trend above the 200-day with strong upside volume flows.

    I would consider any upside-volume day that registers volume near or above 79,711 shares as bullish. If we continue to see that trend, look for WPPGY to tag its next overhead resistance level at $62.74. On the flipside, I would avoid WPPGY or look for short-biased trades, if it moves back below its 200-day, and then some near-term support at $57.02 with heavy volume.

    Ancestry.com ACOM

    This company operates as an online family-history resource for subscribers worldwide. This stock is trading up 10.2% at $24.95 in recent trading.

    Today’s Volume: 1,831,000
    Average Volume: 826,684
    Volume % Change: 272%

    Shares of ACOM are soaring today after Bloomberg News, citing people familiar with the matter, said that the company is mulling selling itself and has hired Frank Quattrone’s Qatalyst Partners LLC to find buyers.

    From a technical perspective, ACOM is gapping up sharply higher here on monster volume. This move has pushed the stock back above its 50-day moving average at $23.62, and right near its 200-day moving average of $25.18.

    Traders should now look for long-biased trades if ACOM can trigger a near-term breakout trade. That trade will hit once ACOM takes out some near-term overhead resistance at $27 with high volume.

    Look for a sustained move or close above $27 with volume that’s near or above 828,684 shares. If we get that move, I would then add to any long positions above $28.99, and target a run into the $30s.

    News Corp NWS

    This is a diversified global media company. News Corp operates in six segments: Cable Network Programming; Filmed Entertainment; Television; Direct Broadcast Satellite Television; Publishing, and Other. This stock is trading up 3.6% at $19.52 in recent trading.

    Today’s Volume: 6,707,000
    Average Volume: 2,569,930
    Volume % Change: 330%

    Shares of NWS are rising today after the company inked a deal to buy out Walt Disney’s 50% stake in Asian joint venture ESPN Star Sports, giving the company full control of the unit.

    From a technical perspective, NWS is ripping higher here on monster volume, as this stock continues to trend up after finding some buying interest near its 200-day moving average of $18.46. This move is pushing NWS within range of triggering a breakout trade. That trade will hit once NWS takes out its 50-day moving average of $19.69, and then some near-term overhead resistance at $20.01 with high volume.

    Look for a sustained move or close above those levels with volume that’s near or above 2,569,930 shares. If we get that move, look for NWS to re-test its recent high of $20.94.

    Aixtron SE AIXG

    This company is a provider of deposition equipment to the semiconductor and compound-semiconductor industry. This stock is trading up 4% at $15.01 in recent trading.

    Today’s Volume: 270,000
    Average Volume: 197,509
    Volume % Change: 138%

    From a technical perspective, AIXG is following through with some upside momentum today after the stock found big volume buying interest yesterday at $13.51. This move is pushing AIXG within range of testing its 200-day moving average of $15.49.

    Traders should now look for long-biased trades once AIXG clears both its 200-day of $15.49 and its 50-day at $16.56 with high volume. Look for a sustained move or close above those levels with volume that’s near or above 197,509 shares. If we get that action soon, then AIXG could easily re-test its May high of $18.91.

    Church Downs CHDN

    This is a diversified provider of pari-mutuel horseracing, casino gaming and entertainment, and is the country’s source of online account wagering on horseracing events. This stock is trading up 1% at $59.95 in recent trading.

    Today’s Volume: 137,000
    Average Volume: 64,694
    Volume % Change: 219%

    From a technical perspective, CHDN is moving back above its 50-day moving average of $59.20 today on above average volume. This move is quickly pushing CHDN within range of triggering a major breakout trade. That trade will hit once CHDN takes out some near-term overhead resistance at $60.17 with high-volume.

    Traders should now look for long-biased trades if CHDN can sustain a move or close over $60.17 with volume that’s near or above 64,694 shares. If we get that action soon, then CHDN can easily tag its May high of $63.18 or trend even higher. On the flipside, I would avoid CHDN or look for short-biased if it moves back below its 50-day with heavy volume.

    Mellanox Technologies MLNX

    This is a fabless semiconductor company that produces and supplies interconnect products that facilitate data transmission between servers, storage systems and communications infrastructure equipment and other embedded systems. This stock is trading up 7.9% at $62.61 in recent trading.

    Today’s Volume: 673,000
    Average Volume: 455,498
    Volume % Change: 96%.

    From a technical perspective, MLNX has started to trigger a breakout trade today now that it’s moving above some near-term overhead resistance at $61.40 with above-average volume. At last check, MLNX has hit an intraday high of $63 on volume that’s well above its three-month average action of 455,498 shares.

    Traders should continue to look for long-biased trades as long as MLNX can maintain its trend over $61.40 to $63 with strong upside volume flows. I would consider any upside volume day that registers near or above 455,498 shares as bullish. If we continue to see that action, then MLNX could easily re-test its April high of $67.20 in the near future.

    Questcor Pharmaceuticals QCOR

    This is a biopharmaceutical company. Questcor’s primary product is H.P. Acthar Gel (repository corticotropin injection) (Acthar), an injectable drug that is approved by the United States Food and Drug Administration, for the treatment of 19 indications. This stock is trading up 7.3% at $44.02 in recent trading.

    Today’s Volume: 1,852,000
    Average Volume: 1,782,540
    Volume % Change: 71%

    From a technical perspective, QCOR is skyrocketing here on above-average volume, and the stock has started to trigger a near-term breakout trade above $42.53. Traders should continue to look for long-biased trades as long as QCOR is trending above $42.53 and trading near its daily high of $44.50 with strong upside volume flows.

    I would consider any upside volume day that hits near or above 1,782,540 shares as bullish. If we continue to see that trend, look for QCOR to easily hit its May high of $46.84, if not trend much higher, in the near future.
    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.

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