Stock Quotes in this Article: ARO, CAVM, CLNE, HMIN, HXL, XLNX, FB

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.

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

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.

Facebook (FB)

This company operates a social networking Web site. Millions of people use Facebook everyday to keep up with friends, upload an unlimited number of photos, share links and videos, and learn more about the people they meet. This stock is trading up 9.5% at $21.75 in recent trading.

Today’s Volume: 140 million

Average Volume: 53.26 million

Volume % Change: 378%

From a technical perspective, FB is ripping higher here back above its 50-day moving average of $20.62 with monster upside volume. This move is quickly pushing FB within range of triggering a major breakout trade. That trade will hit once FB manages to take out some near-term overhead resistance at $24.25 with high volume.

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    Traders should now look for long-biased trades in FB as long as it’s trending above its 50-day at $20.62, and then once it sustains a move or close above $24.25 with volume that hits near or above 53.26 million shares. If that breakout triggers soon, then look for FB to re-fill its previous gap down zone form August that started near $27.50.

    Clean Energy (CLNE)

    This company is engaged in the business of selling natural gas fueling solutions to its customers mainly in the United States and Canada. This stock is trading up 4.8% at $12.86 in recent trading.

    Today’s Volume: 2.81 million

    Average Volume: 1.10 million

    Volume % Change: 340%

    From a technical perspective, CLNE is showing some follow through strength Wednesday with volume after the stock ripped higher on Tuesday with heavy upside volume. This move has now pushed CLNE briefly above its 50-day moving average of $12.97. At last check, CLNE has hit an intraday high of $13.20 and volume is well above its three-month average action of 1.10 million shares.

    Traders should now look for long-biased trades in CLNE as long as it’s trending near or above its 50-day at $12.96 with above average volume flows. I would consider any upside volume day that registers near or above 1.10 million shares as bullish. If CLNE can maintain that trend, then look for this stock to challenge its next major overhead resistance levels at $14.20 to $14.35. Any high-volume move above those levels will then put more resistance at $14.69 and its 200-day at $15.51 into focus for CLNE.

    Hexcel (HXL)

    This company develops, manufactures and markets composites, including carbon fibers, reinforcements, prepregs, honeycomb, adhesives and composite structures, for use in Commercial Aerospace, Space, Defense and Industrial applications. This stock is trading up 5.2% at $25.66 in recent trading.

    Today’s Volume: 1.66 million

    Average Volume: 769,071

    Volume % Change: 231%

    Shares of HXL are trending up today after The Daily Mail reported that BAE Systems may look to acquire Hexcel, despite rumors and speculation that it would become a takeover target itself.

    From a technical perspective, HXL is ripping higher here right off its 50-day moving average of $24.57 and back above its 200-day moving average of $24.88 with above-average volume. This move is quickly pushing HXL within range of triggering a near-term breakout trade. That trade will hit once HXL manages to take out some near-term overhead resistance levels at $26.45 to $26.76 with high volume.

    Traders should now look for long-biased trades in HXL as long as it’s trending above its 200-day at $24.88, and then once it sustains a move or close above those breakout levels with volume that hits near or above 769,071 shares. If that breakout triggers soon, then look for HXL to set up to re-test or possibly take out its next major overhead resistance level at $28.01. Keep in mind that if HXL clears $28.01 then the stock would enter new 52-week high territory, which is bullish technical price action.

    Aeropostale (ARO)

    This company operates as a mall-based retailer of casual apparel and accessories for young women and men in the United States. This stock is trading up 3.6% at $13.53 in recent trading.

    Today’s Volume: 3.28 million

    Average Volume: 2.49 million

    Volume % Change: 123%

    From a technical perspective, ARO is gapping up here back above its 50-day moving average of $13.50 with above-average volume. This moving is coming after ARO recently came out of a downtrending chart pattern that saw shares fall from $14.99 to its recent low of $11.76. This action today is now pushing ARO within range of triggering a major breakout trade. That trade will hit once ARO manages to take out some near-term overhead resistance levels at $14.28 to $14.99 with high volume.

    Traders should now look for long-biased trades in ARO as long as it’s trending above its 50-day at $13.50, and sustains a move or close above those breakout levels with volume that hits near or above 2.49 million shares. If that breakout triggers soon, then ARO will set up to re-fill some of its previous gap-down zone from August that started new $20. Some possible upside targets are $17 to $18. Keep in mind that ARO reports earnings on Nov. 29, so a move into that gap could easily get under way ahead of its report.

    Xilinx (XLNX)

    This company designs, develops and markets programmable platforms, including integrated circuits, software design tools and predefined system functions delivered as intellectual property cores. This stock is trading up 2.2% at $33.94 in recent trading.

    Today’s Volume: 2.59 million

    Average Volume: 2.50 million

    Volume % Change: 59%

    Shares of XLNX are rising modestly Wednesday after Raymond James reiterated its outperform rating on the stock. The firm currently has a $36 price target on the shares.

    From a technical perspective, XLNX is bouncing notably higher here right off both its 50-day at $33.61 and its 200-day at $33.64 with above-average volume. This move is quickly pushing XLNX within range of triggering a near-term breakout trade. That trade will hit once XLNX manages to take out some near-term overhead resistance at $34.48 with high volume.

    Traders should now look for long-biased trades in XLNX as long as it’s trending above its 200-day at $33.64, and then once it sustains a move or close above $34.48 with volume that hits near or above 2.50 million shares. If that breakout triggers soon, then XLNX will set up to re-test or possibly take out its next major overhead resistance levels at $35.57 to $36.31. Any high-volume move above those levels will then put $36.56 to $37 into focus for XLNX.

    Cavium (CAVM)

    This company is a provider of semiconductor processors that enable processing for networking, communications, storage, wireless, security, video and connected home and office applications. This stock is trading up 5.6% at $32.47 in recent trading.

    Today’s Volume: 859,000

    Average Volume: 860,790

    Volume % Change: 56%

    From a technical perspective, CAVM is bouncing sharply higher here with above-average volume. This move has briefly pushed the stock back above its 50-day moving average of $32.83. At last check, CAVM has hit an intraday high of $33.27 and volume is just starting to surpass its three-month average volume of 860,790 shares. This move is now pushing CAVM within range of triggering a near-term breakout trade. That trade will hit once CAVM manages to take out some near-term overhead resistance level at $33.54 to $34 with high volume.

    Traders should now look for long-biased trades in CAVM as long as it’s trending above its 50-day at $32.83, and then once it sustains a move or close above those breakout levels with volume that hits near or above 860,790 shares. If that breakout triggers soon, then CAVM will set up to re-test or possibly take out its next major overhead resistance levels at $35.78 to $36.61. Any high-volume move above those levels will then put $38.67 into focus for CAVM.

    Home Inns & Hotels Management (HMIN)

    This company develops, leases, operates, franchisees, and manages a chain of hotels in the People's Republic of China. This stock is trading up 2% at $27.53 in recent trading.

    Today’s Volume: 361,000

    Average Volume: 236,637

    Volume % Change: 169%

    From a technical perspective, HMIN is bouncing modestly higher here right above its 50-day moving average of $26.49 with above-average volume. This stock has been trending sideways for the past month, with shares moving between $25.83 on the downside and $29.67 on the upside. This bounce today is starting to push HMIN within range of triggering a breakout above the upper-end of that range. That breakout will trigger once HMIN clears $29 to $29.67 with high volume.

    Traders should now look for long-biased trades in HMIN as long as it’s trending above its 50-day at $26.49, and then once it sustains a move or close above those breakout levels with volume that hits near or above 236,637 shares. If that breakout triggers soon, then HMIN will set up to re-test or possibly take out its next major overhead resistance levels at $32.95 to $33.27. Any high-volume move above those levels will then put $35.89 into focus for HMIN.

    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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    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.