DELAFIELD, Wis. (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.
>>5 Stocks Hedge Funds Love This Fall
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.
>>5 Stocks Insiders Are Scooping Up
With that in mind, let's take a look at several stocks rising on unusual volume today.
Green Plains Renewable Energy
Green Plains Renewable Energy (GPRE) is a vertically integrated producer, marketer and distributer of ethanol. This stock closed up 3.1% at $16.16 in Wednesday's trading session.
Wednesday's Volume: 937,000
Three-Month Average Volume: 478,911
Volume % Change: 96%
>>5 Stocks Set to Soar on Bullish Earnings
From a technical perspective, GPRE bounced higher here right above some near-term support at $15.41 with above-average volume. This stock has found buying interest over the last two months, each time it has pulled back to $15 or just above that level. Shares of GPRE are now starting to trend within range of triggering a major breakout trade. That trade will hit if GPRE manages to take out some near-term overhead resistance levels at $16.85 to $17.45 and then once it clears its 52-week high at $18.40 with high volume.
Traders should now look for long-biased trades in GPRE as long as it's trending above some key near-term support levels at $15.41 or at $14.96 and then once it sustains a move or close above those breakout levels with volume that this near or above 478,911 shares. If that breakout hits soon, then GPRE will set up to enter new 52-week-high territory above $18.40, which is bullish technical price action. Some possible upside targets off that breakout are $22 to $25.
Gain Capital
Gain Capital (GCAP) is an independent provider of online forex trading. This stock closed up 5.5% at $12.13 in Wednesday's trading session.
Wednesday's Volume: 447,000
Three-Month Average Volume: 240,517
Volume % Change: 118%
>>5 Stocks Under $10 Making Big Moves
From a technical perspective, GCAP bounced sharply higher here right off some near-term support at $11.33 with solid upside volume. This stock has been downtrending for the last few weeks, with shares sliding lower from its high of $14.62 to its recent low of $11.33. During that downtrend, shares of GCAP have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of GCAP have now started to rebound off that $11.33 low and the stock looks ready to see its downside volatility end in the short-term.
Traders should now look for long-biased trades in GCAP as long as it's trending above that low of $11.33 and then once it sustains a move or close above Wednesday's high of $12.40 and above more resistance at $13 with volume that hits near or above 240,517 shares. If we get that move soon, then CGAP will set up to re-test or possibly take out its all-time high at $14.62. Any high-volume move above $14.62 will then give GCAP a chance to hit $16 to $17.
Infoblox
Infoblox (BLOX) is an automated network controller. This stock closed up 2.7% at $39.72 in Wednesday's trading session.
Wednesday's Volume: 1.18 million
Three-Month Average Volume: 621,078
Volume % Change: 80%
>>3 Huge Stocks on Traders' Radars
From a technical perspective, BLOX spiked higher here right off its 50-day moving average of $37.19 with above-average volume. This stock pulled back sharply over the last month, with shares falling from its high of $45.50 to its intraday low on Wednesday of $37.26. That decline has now stopped at BLOX's 50-day, which could mean the downside volatility for this stock is over in the short-term.
Traders should now look for long-biased trades in BLOX as long as it's trending above its 50-day at $37.19 and then once it sustains a move or close above Wednesday's high of $40.39 to more resistance at $42.93 with volume that's near or above 621,078 shares. If we get that move soon, then BLOX will set up to re-test or possibly take out its all-time high at $45.50. Any high-volume move above $45.50 will then give BLOX a chance to tag $50.
Jones Lang LaSalle
Jones Lang LaSalle (JLL) is a financial and professional services firm specializing in real estate. This stock closed up 1.5% at $83.98 in Wednesday's trading session.
Wednesday's Volume: 1.10 million
Three-Month Average Volume: 371,411
Volume % Change: 218%
>>4 Hot Stocks to Trade (or Not)
From a technical perspective, JLL bounced modestly higher with strong upside volume. This stock has been downtrending badly for the last month, with shares falling from its high of $90.67 to its intraday low of $80.86. During that downtrend, shares of JLL have been consistently making lower highs and lower lows, which is bearish technical price action. That said, the downside volatility for JLL could be over in the short-term since the stock bounced off its intraday low and closed near its daily highs with big volume.
Traders should now look for long-biased trades in JLL as long as it's trending above Wednesday's low of $80.86 and then once it sustains a move or close above Wednesday's high of $84.39 with volume that's near or above 371,411 shares. If we get that move soon, then JLL will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day of $86.41 to $90.
II-VI
II-VI (IIVI) develops, refines, manufactures and markets high-technology materials and derivative precision components and products for precision use in industrial, military, telecommunications, photovoltaic, medical and aerospace applications. This stock closed up 1.9% at $18 in Wednesday's trading session.
Wednesday's Volume: 325,000
Three-Month Average Volume: 209,788
Volume % Change: 125%
>>5 Rocket Stocks Ready for Blastoff
From a technical perspective, IIVI bounced modestly higher here right off its 200-day moving average of $17.59 with above-average volume. This stock has been downtrending for the last month, with shares falling from its high of $20.80 to its recent low of $17.61. During that downtrend, shares of IIVI have been mostly making lower highs and lower lows, which is bearish technical price action. That said, shares of IIVI could be ready to see an end to its recent downside volatility if support at its 200-day can hold.
Traders should now look for long-biased trades in IIVI as long as it's trending above its 200-day at $17.59 and then once it sustains a move or close above Wednesday's high of $18.14 with volume that's near or above 209,788 shares. If we get that move soon, then IIVI will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day of $19.07 to $19.19. Any high-volume move above those levels will then give IIVI a chance to re-test or possibly take out its 52-week high at $20.80.
To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.
-- Written by Roberto Pedone in Delafield, Wis.
RELATED LINKS:
>>4 Stocks Under $10 in Breakout Territory
>>5 Trades to Take From the Health Care Sector
>>5 Earnings Stocks Everyone Hates -- but You Should Love
Follow Stockpickr on Twitter and become a fan on Facebook.
At the time of publication, author had no positions in stocks mentioned.
Roberto Pedone, based out of Delafield, Wis., 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.
No comments:
Post a Comment