Stock Quotes in this Article: AKAM, CERN, CYOU, JDSU, NTES

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.”

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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.

 

 

JDS Uniphase

JDS Uniphase (JDSU) is a provider of communications test and measurement solutions and optical products for telecommunications service providers, wireless operators, cable operators, and network equipment manufacturers. This stock is trading up 9.6% at $11.71 in recent trading.

Today’s Volume: 10.9 million

Average Volume: 5.1 million

Volume % Change: 356%

Shares of JDSU are soaring toady after the company reported better-than-expected quarterly results on Tuesday after the market close.

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From a technical perspective, JDSU is ripping to the upside here with monster volume. This move has pushed JDSU above two key overhead resistance levels; one at 11.38 and the other at its 200-day moving average of $11.58.

Traders should continue to look for long-biased trades in JDSU as long as this stock can sustain a high-volume trend above both of those key overhead resistance levels. I would consider any upside volume day that registers near or above 5.1 million as bullish. If JDSU can continue to hold that trend, then this stock has a great chance of tagging $12.50 to $13.50 or possibly much higher in the near future.

I also featured JDSU recently in “5 Stocks Ready to Surge on Bullish Earnings.”

NetEase

NetEase (NTES) is a China-based Internet technology company, which is engaged in the development of applications, services and other technologies for the Internet in China. This stock is trading up 1.9% at $57.10 in recent trading.

Today’s Volume: 739,000

Average Volume: 675,583

Volume % Change: 155%

Shares of NTES are moving modestly higher today in front of the company’s earnings report which is set for tonight after the market close.

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From a technical perspective, NTES is moving notably higher here with above average volume, and its challenging some near-term overhead resistance levels of $57.09 to its 50-day moving average of $57.42. At last check, NTES has hit an intraday high of $57.40 but it’s subsequently pulled back to around $57.10.

Traders should now wait until after NETS reports earnings, and then look to play the next major breakout trade. That trade will hit once NTES clears its 50-day at $57.42 with high volume. Look for a sustained move or close over $57.42 with volume that hits near or above 675,583 shares. If we get that move post-earnings, then NETS will have a great chance of re-testing or possibly taking out its next major overhead resistance level at $61.90.

Changeyou.com

Changeyou.com (CYOU) is engaged in the development, operation and licensing of online games in China, including massively multiplayer online games, which are interactive online games. This stock is trading up 5% at $21.39 in recent trading.

Today’s Volume: 375,000

Average Volume: 189,250

Volume % Change: 252%

From a technical perspective, CYOU is bouncing strong here right near its 200-day moving average of $20.03 with above average volume. This move has also pushed CYOU above some near-term overhead resistance at $20.84.

Traders should now look for long-biased trades once CYOU triggers its next major breakout trade. That trade will hit once CYOU takes out some past overhead resistance at $22.04 with high volume. Look for a sustained move or close over $22.04 with volume that’s near or above 189,250 shares. Keep in mind that traders can also look to get long CYOU as long as it holds today’s low of $20.35, and simply anticipate that breakout. If that breakout triggers soon, then look for CYOU to re-test and possibly take out its next major overhead resistance level at $23.68.

Cerner

Cerner (CERN) is a supplier of health care information technology solutions, services, devices and hardware. This stock is trading up 3.5% at $74.04 in recent trading.

Today’s Volume: 1.5 million

Average Volume: 1.45 million

Volume % Change: 89%

From a technical perspective, CERN is bouncing strong here right off its 200-day moving average of $71.41 with decent volume. This move is coming after CERN recently plunged from around $84 to $70.37. During that sharp drop, shares of CERN were consistently making lower highs and lower lows, which is bearish technical price action. That said, CERN could be setting up to change that bearish trend.

Traders should now look for long-biased trades if CERN can manage to trigger a near-term breakout trade. That trade will trigger once CERN takes out some near-term overhead resistance at $74.32 to $75.32 with high volume. Look for a sustained move or close above those levels with volume that hits near or above 1.45 million shares. If that breakout triggers soon, then look for CERN to re-test or possibly take out its next significant overhead resistance levels at $77.96 to $78.53.

SurModics

SurModics (SRDX) is a provider of drug delivery and surface modification technologies to the health care industry. This stock is trading up 3.7% at $18.22 in recent trading.

Today’s Volume: 159,000

Average Volume: 54,913

Volume % Change: 410%

From a technical perspective, SRDX is ripping higher here off some near-term support at $17.50 with above average volume. This move has also pushed SRDX into breakout territory, since the stock has taken out some near-term overhead resistance at $18.

Traders should now look for long-biased trades in SRDX as long as it can hold this trend above $17.50 to $18 with strong upside volume flows. I would consider any upside volume day that registers near or above 54,913 shares as bullish. If SRDX can maintain that trend, then this stock has a great chance of heading north of $20 in the near future.

TeleTech

TeleTech (TTEC) is a global provider of customer experience strategy, technology and business process outsourcing solutions. This stock is trading up 4% at $16.80 in recent trading.

Today’s Volume: 231,000

Average Volume: 185,441

Volume % Change: 125%

From a technical perspective, TTEC is bouncing strong here right off its 200-day moving average of $16.12 with above average volume. This bounce is also coming right near its 50-day moving average of $15.97. This move is quickly pushing TTEC within range of triggering a near-term breakout trade. That trade will hit once TTEC takes out some near-term overhead resistance levels at $16.81 to $16.85 with high volume.

Traders should now look for long-biased trades once TTEC sustains a move or close above those levels with volume that hits near or above 185,411 shares. If that breakout triggers soon, then TTEC will have a great chance of re-testing or possibly taking out its next major overhead resistance levels at $17.87 to $18.23.

Akamai Technologies

Akamai Technologies (AKAM) provides services for accelerating and improving the delivery of content and applications over the Internet, ranging from live and on-demand streaming videos to conventional content on Web pages to tools that help people transact business. This stock is trading up 4.6% at $37.10 in recent trading.

Today’s Volume: 3.1 million

Average Volume: 3.2 million

Volume % Change: 75%

From a technical perspective, AKAM is ripping to the upside here right around some near-term support at $35 with decent volume. This move has also pushed AKAM into breakout territory, since the stock has cleared some near-term overhead resistance at $36.12.

Traders should now look for long-biased trades as long as AKAM is trending above today’s low of $35.50 with strong upside volume flows. I would consider any up day that registers volume that’s near or above 3,201,320 shares as bullish. If we continue to see AKAM hold this trend, then look for the stock to re-test and possibly take out its next major overhead resistance level at $39.09.

On the flipside, I would avoid this stock or look for short-biased trades if it moves back below $33 with high volume. A high-volume move below $33 will setup AKAM to fill some of that large gap up from back in July.

Advent Software

Advent Software (ADVS) offers software and services that automate work flows and data across investment management organizations, as well as the information flows between an investment management organization and external parties. This stock is trading up 2.3% at $23.01 in recent trading.

Today’s Volume: 228,000

Average Volume: 180,627

Volume % Change: 109%

From a technical perspective, ADVS is bouncing here right off some near-term support at $22.50 with above average volume. This move is coming after ADVS recently gapped down huge from around $28.50 to below $22 with monster volume. Following that gap down, shares of ADVS went on to hit a near-term low of $20.86, but it has now subsequently trended up towards its current price of $23.

Traders should now look for long-biased trades in ADVS if it can manage to trigger a near-term breakout trade. That trade will hit once ADVS takes out some near-term overhead resistance at $23.51 with high volume. Look for a sustained move or close above $23.51 with volume that hits near or above 180,627 shares. If that breakout hits soon, then look for ADVS to make a run at $25 to $26.

On the flipside, I would avoid this stock or look for short-biased trades if it fails to trigger that breakout, and then moves below $22 with heavy volume. A high-volume move below $22 will setup ADVS to re-test and possibly take out that recent low of $20.86.

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 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.