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8 Stocks Soaring on High 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.
With that in mind, let's take a look at several stocks rising on unusual volume today.
Zhongpin (HOGS) is engaged in the meat and food processing and distribution business in the People’s Republic of China. This stock is trading up 8.7% at $10.87 in recent trading.
Today’s Volume: 372,000
Average Volume: 190,106
Volume % Change: 465%
From a technical perspective, HOGS is ripping to the upside with monster volume, and this stock has started to break out above some past overhead resistance at $10. This breakout could be setting up HOGS for a re-test and possible breakout trade above its March high at $12.25.
Traders should now look for long-biased trades as long as HOGS is trending above $10 and if it closes near its daily highs. At last check, HOGS has hit an intraday high of $11.02 and volume is well above its three-month average action of 190,106 shares.
On the flipside, I would avoid this stock if trends back below that key breakout level of $10 with heavy volume.
Healthcare Services Group
Healthcare Services Group (HCSG) provides management, administrative and operating services to the housekeeping, laundry, linen, facility maintenance and dietary service departments of the health care industry, including nursing homes, retirement complexes, rehabilitation centers and hospitals located throughout the U.S. This stock is trading up 6.2% at $20.85 in recent trading.
Today’s Volume: 493,000
Average Volume: 366,998
Volume % Change: 185%
Shares of HCSG are ripping higher today after the company reported second-quarter earnings that rose 15% as they posted strong revenue growth.
From a technical perspective, HCSG is bouncing hard here right off its 50-day moving average of $19.76 with strong volume. This move has also pushed HCSG into near-term breakout territory, since the stock has taken out some overhead resistance at $20.55.
Traders should now continue to look for long-biased trades as long as HCSG is trending above $20.55 with strong upside volume flows. I would consider any upside volume day that registers near or above 366,998 shares as bullish. If we continue to see HCSG hold that trend, then this stock has a great chance of re-testing and possibly taking out its next significant overhead resistance levels at $21.74 to $21.91.
Allegiant Travel (ALGT) is a leisure travel company focused on providing travel services and products to residents of small, underserved cities in the U.S. This stock is trading up 4.1% at $73.35 in recent trading.
Today’s Volume: 161,000
Average Volume: 163,716
Volume % Change: 100%
Shares of ALGT are moving notably higher today after analysts at Deutsche Bank upgraded the stock from hold to buy and slapped a $90 price target on the shares. The firm said industry sales are trending higher and airlines are paying lower fuel costs.
From a technical perspective, ALGT has been active to the upside here with decent volume, and the stock has briefly broken out above some near-term overhead resistance at $72.41. At last check, shares of ALGT have hit an intraday high of $75.93 and volume is sitting right near its three-month average action of 163,716 shares.
Market players should now look to play the next breakout for ALGT which will trigger once it clears its daily high of $75.93 with volume. Look for a sustained move or close above that level with volume that’s near or above 163,716 shares. Keep in mind that this stock is in an incredibly strong uptrend, so you could even buy off weakness with a stop near $70 to $68 to play that move as well.
Qlik Technologies (QLIK) provides business intelligence solutions. The QlikView Business Discovery platform helps people create and share insights and analysis in groups and across organizations. This stock is trading up 1.3% at $18.19 in recent trading.
Today’s Volume: 1.4 million
Average Volume: 1.5 million
Volume % Change: 74%
From a technical perspective, QLIK is bouncing modestly here off some near-term support at $17.38 with decent volume. This bounce is following a huge drop in this stock, since shares have plunged from its April high of $33.59 to a recent low of $17.38. That massive slide lower has also created an oversold condition, since QLIK’s current relative strength index reading is 29.54.
Traders could now look for an oversold bounce for intraday trades as long as QLIK is trending above $17.38 with strong upside volume flows. I would consider any upside volume day that hits near or above 1.5 million shares as bullish. Keep in mind that this stock will also breakout in the near-term with a move over $19 with volume.
Theravance (THRX) is a biopharmaceutical company with a pipeline of internally discovered product candidates and strategic collaborations with pharmaceutical companies. This stock is trading up 3.9% at $29.45 in recent trading.
Today’s Volume: 694,000
Average Volume: 491,792
Volume % Change: 62%
Shares of THRX are moving smartly to the upside today after Piper Jaffray raised its price target on the stock due to its positive LAMA/LABA Phase III data and maintains its overweight rating on the shares.
From a technical perspective, THRX is showing some following through momentum buying here with high volume. This stock has been in a monster uptrend for the last month and change, with shares rally from a low of $17.06 to today’s high of $29.87. During that move, shares of THRX have been making higher lows and higher highs, which is bullish technical price action. This move today has also pushed THRX into major breakout territory, since the stock has moved above some past overhead resistance at $28.95.
Traders should now look for long-biased trades as long as THRX is trending above $28.95 to $28.25 with strong upside volume flows. I would consider any upside volume day that registers near or above 491,792 shares as bullish. If we continue to see that action, then THRX could hit $32 to $35 in the near future.
Keep in mind, though, that this stock is getting overbought since its relative strength index reading is now 81.49. Only look for long trades if THRX can hold the breakout and today’s low.
As of the most recently reported quarter, Theravance was one of Seth Klarman's Baupost Group holdings.
Netflix (NFLX) is an Internet subscription service streaming television shows and movies. This stock is trading up 3.6% at $83.91 in recent trading.
Today’s Volume: 3.5 million
Average Volume: 5.1 million
Volume % Change: 50%
From a technical perspective, NFLX is ripping to the upside here off some near-term support at $79.53 with decent volume. This move is quickly pushing the stock within range of triggering a near-term breakout trade. That trade will hit once NFLX takes out some near-term overhead resistance at $85.40 with high volume.
Traders should now look for long-biased trades once NFLX sustains a move or close over $85.40 with volume that’s near or above 5.1 million shares. If we get that action soon, then NFLX has a great chance of re-testing and possibly taking out its 200-day moving average of $92.02. On the flipside, I would avoid NFLX or look for short-term short-biased trades if it moves back below that near-term support at $79.53 with high-volume.
Netflix, one of the 10 Worst-Performing S&P 500 Stocks in the Second Quarter, also shows up on a list of 6 Sucker Stocks to Avoid at All Costs.
Carmike Cinemas (CKEC) is a motion picture exhibitor in the U.S. This stock is trading up 3.3% at $15.21 in recent trading.
Today’s Volume: 243,000
Average Volume: 278,468
Volume % Change: 61%.
From a technical perspective, CKEC is bouncing hard right off some near-term support at $14.50 with decent volume. This move is quickly pushing CKEC within range of triggering a major breakout trade. That trade will hit once CKEC takes out some overhead resistance levels at $15.16 and then $15.80 with high-volume.
Traders should look for long-biased trades once CKEC sustains a move or close above those levels with volume that’s near or above 278,468 shares. If that breakout triggers soon, then CKEC should setup to re-test and possibly take out its 2010 high of $19.
On the flipside, I would avoid this stock or look for short-biased trades if it fails to trigger that breakout, and then moves back below its 50-day moving average at $14.25 with high-volume.
Buffalo Wild Wings
Buffalo Wild Wings (BWLD) is an owner, operator and franchisor of restaurants featuring a variety of menu items, including its Buffalo, New York-style chicken wings spun in any of its 14 signature sauces or four signature seasonings. This stock is trading up 1% at $83.24 in recent trading.
Today’s Volume: 468,000
Average Volume: 589,030
Volume % Change: 79%.
From a technical perspective, BWLD is bouncing off some previous support at around $81.63 with decent volume. This move is pushing the stock within range of its 50-day moving average of $84.47.
Traders should now look for long-biased trades once BWLD takes out its 50-day at $84.47 with high volume. Look for a sustained move or close above $84.47 with volume that’s near or above 589,030 shares. If we get that action soon, then BWLD could easily re-test and possibly take out its July high of $88.85 ahead of its earnings report on July 24.
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.