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8 Stocks Rising on Huge 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 a number of stocks rising on unusual volume today.
Wynn Resorts (WYNN) is a developer, owner and operator of destination casino resorts. The stock is trading up 6.4% at $119.94 in recent trading.
Today’s Volume: 5.9 million
Average Volume: 2.5 million
Volume % Change: 310%
Shares of WYNN are ripping higher today after the company’s board moved over the weekend to force out co-founder Kazuo Okada as being unsuitable. As part of his ouster, Wynn will also forcibly redeem his 20% stake in the company, paying Okada $1.9 billion in 10 years.
From a technical perspective, WYNN is gapping up strong today on heavy volume. The stock is now trading within range of triggering a major breakout trade if it can manage to take out some near-term overhead resistance levels at $122.71 to $123.14 on strong volume.
Traders should look for a sustained high-volume move and close above those levels to signal that this stock wants to trend much higher. Look for volume that’s near or well above 2,519,930 shares. If we get that action today or soon, then look for WYNN to trade back towards $130 to $135 in the near future.
A big bet on Wynn comes from Coatue Management, which initiated a new position in the stock in the fourth quarter.
FreightCar America (RAIL) is engaged in manufacturing of aluminum-bodied railcars in North America. The stock is trading up 6.5% at $26.99 in recent trading.
Today’s Volume: 374,000
Average Volume: 99,369
Volume % Change: 480%
From a technical perspective, RAIL recently gapped up big from $21 to $27.35 on monster volume after reporting solid earnings. Now the stock is trading within range of breaking out above that earnings’ day high of $27.35. At last check, the stock hit a daily high of $27.11 and the volume is well above the average action of 99,369 shares.
Yandex (YNDX) is a provider of internet services, headquartered in the Russian Federation. The stock is trading up 3.5% at $22.85 in recent trading.
Today’s Volume: 2 million
Average Volume: 1.2 million
Volume % Change: 203%
Shares of YNDX are rising nicely today after the company said it agreed to a partnership with Twitter that will allow Yandex to show new tweets in its search results almost instantly.
From a technical perspective, YNDX is starting to trigger a major breakout trade today now that this stock is moving above some near-term overhead resistance at $22.44 on monster volume.
Trader should now watch for a sustained high-volume move and close over $22.44 to signal that YNDX wants to trend much higher. If we get that action today, then look for YNDX to re-test its next significant overhead resistance level near $25 to $26 in the near future.
Yandex is one of the top holdings at Chase Coleman's Tiger Global Management, comprising 18.8% of the total portfolio as of the most recently reported quarter.
Advanced Energy Industries
Advanced Energy Industries (AEIS) designs, manufactures sells and supports power conversion products that transform power into various usable forms. This stock is trading up 6.8% at $12.28 in recent trading.
Today’s Volume: 300,000
Average Volume: 387,498
Volume % Change: 50%
From a technical perspective, AEIS is gapping up today and breaking out above some near-term overhead resistance at $11.68 on decent volume.
Traders should now look for a sustained high-volume move and close over $11.68 and near its daily highs to signal that AEIS wants to trend much higher. At last check, the stock is trading right near its daily highs and volume is just under its average volume of 387,498 shares. If we get a strong close today, then traders should look for AEIS hit $13 to $14 in the near future.
Garmin (GRMN) is a provider of navigation, communication and information devices and applications, which are enabled by GPS technology. This stock is trading up 1.9% at $45.02 in recent trading.
Today’s Volume: 1.5 million
Average Volume: 1 million
Volume % Change: 167%
From a technical perspective, GRMN is acting very bullish today since the stock has hit a brand new 52-week high on heavy volume. At last check, the daily high for GRMN today is $45.62, so right now the stock is within range of that high at $45.
If GRMN continues to close strong, then this stock has a great chance to test $50 in the near future. Keep in mind that GRMN reports earnings tomorrow, so look for new highs if the report is solid and the bulls maintain control of the stock.
MicroStrategy (MSTR) is a worldwide provider of business intelligence software that enables companies to report, analyze and monitor the data stored across their enterprise. This stock is trading up 7.4% at $135.53 in recent trading.
Today’s Volume: 300,000
Average Volume: 163,640
Volume % Change: 225%
From a technical perspective, MSTR is starting to flirt with a big breakout trade today now that this stock has started to move above some past overhead resistance at $134.69 on heavy volume. At last check, MSTR hit $138.33 at the highs of the day and volume is already well above its average volume of 163,640 shares.
Traders should continue to look for long biased trades in MSTR as long as this stock can close over $134.69 and within range of its daily high. If we get that action, then look for MSTR to re-test its next significant overhead resistance level at $143.98 in the near future.
DreamWorks Animation SKG
DreamWorks Animation SKG (DWA) is engaged in the development, production and exploitation of animated films and characters in the worldwide theatrical, home entertainment, television, merchandising, and licensing and other markets. This stock is trading up 6.1% at $20.71 in recent trading.
Today’s Volume: 623,000
Average Volume: 758,692
Volume % Change: 86%
Shares of DWA are ripping higher today on news that a new trade agreement between the U.S. and China will significantly increase the percentage of Chinese box office revenue that American studios can receive, according to The Hill.
From a technical perspective, DWA is triggering a breakout trade today now that this stock is moving above some overhead resistance levels at $19.78 to $20.68 on decent volume.
Traders should continue to look for long biased trades in DWA if the stock can manage to close above those breakout levels on above average volume. Look for volume that’s near or well above 758,692 shares. If we get that action, then look for DWA to trade back towards its next significant overhead resistance levels at $21.67 and $22.38.
Insight Enterprises (NSIT) is a global provider of IT hardware, software and service solutions to businesses and public sector clients. This stock is trading up 1.3% at $22.28 in recent trading.
Today’s Volume: 150,000
Average Volume: 213,424
Volume % Change: 56%
From a technical perspective, NSIT is trading within range of a big breakout trade now that this stock has tested some near-term overhead resistance at $22.49 on decent volume.
Market players should watch for a sustained high-volume move and close over $22.49 to signal that NSIT wants to trend much higher. Look for volume on a close over $22.49 that’s near or well above 213,424 shares. If we get that action today or soon, then NSIT has a good chance to re-test its 52-week high at $24.85 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.
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.