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.
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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.
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With that in mind, let's take a look at several stocks rising on unusual volume today.
CaesarStone Sdot-Yam
CaesarStone Sdot-Yam (CSTE) manufactures engineered quartz surfaces. This stock closed up 6.6% to $45.19 in Wednesday's trading session.
Wednesday's Volume: 845,000
Three-Month Average Volume: 280,482
Volume % Change: 247%
From a technical perspective, CSTE ripped sharply higher here right off its 50-day moving average of $42.38 with strong upside volume. This move pushed shares of CSTE into breakout territory, since the stock took out some near-term overhead resistance at $44.74. Market players should now look for a continuation move higher in the short-term if CSTE can take out some key near-term overhead resistance levels.
Traders should now look for long-biased trades in CSTE as long as it's trending above its 50-day at $42.38 and then once it sustains a move or close above Wednesday's high of $47.50 to its all-time high at $48.69 with volume that hits near or above 280,482 shares. If we get that move soon, then CSTE will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that move are $55 to $60.
PowerSecure International
PowerSecure International (POWR) is a provider of products and services to electric utilities and to their large commercial, institutional and industrial customers. This stock closed up 5.9% at $19.62 in Wednesday's trading session.
Wednesday's Volume: 1.05 million
Three-Month Average Volume: 265,283
Volume % Change: 331%
From a technical perspective, POWR spiked sharply higher here with heavy upside volume. This move pushed shares of POWR into breakout and new 52-week-high territory, which is bullish technical price action. Market players should now look for a continuation move higher of POWER can tag a new 52-week high in the near-term.
Traders should now look for long-biased trades in POWR as long as it's trending above Wednesday's low of $18.72 and then once it sustains a move or close above Wednesday's high of $20.57 with volume that's near or above 265,283 shares. If we get that move soon, then POWR will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $25 to $27.
Jazz Pharmaceuticals
Jazz Pharmaceuticals (JAZZ) is a specialty pharmaceutical company focused on developing and commercializing innovative products to meet unmet medical needs in neurology and psychiatry. This stock closed up 1.2% at $93.78 in Wednesday's trading session.
Wednesday's Volume: 1.14 million
Three-Month Average Volume: 701,478
Volume % Change: 95%
From a technical perspective, JAZZ spiked modestly higher here right above its 50-day moving average of $88.49 with above-average volume. This move briefly pushed shares of JAZZ into breakout and new 52-week high territory, since it took out some near-term overhead resistance at $95.24. Traders should now look for a continuation move higher if JAZZ can make a new 52-week high soon.
Traders should now look for long-biased trades in JAZZ as long as it's trending above $92 or Wednesday's low of $90.47, and then once it sustains a move or close above Wednesday's high of $97.44 with volume that's near or above 701,478 shares. If we get that move soon, then JAZZ will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $105 to $110
BioTelemetry
BioTelemetry (BEAT) provides ambulatory, continuous, real-time outpatient management solutions for monitoring relevant and timely clinical information regarding an individual's health. This stock closed up 16% at $10.44 in Wednesday's trading session.
Wednesday's Volume: 4.14 million
Three-Month Average Volume: 634,557
Volume % Change: 598%
From a technical perspective, BEAT exploded higher here and gapped up back above its 50-day moving average of $9.58 with monster upside volume. This move briefly pushed shares of BEAT into breakout and new 52-week-high territory, since it took out some near-term overhead resistance levels at $10.17 to $11.27. Market players should now look for a continuation move higher in the short-term if BEAT can make a new 52-week high.
Traders should now look for long-biased trades in BEAT as long as it's trending above Wednesday's low of $10.09 or its 50-day at $9.58 and then once it sustains a move or close above Wednesday's high of $11.40 with volume that hits near or above 634,557 shares. If we get that move soon, then BEAT will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $14 to $15.
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.
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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.
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