4 Stocks Spiking on Unusual Volume
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. Often when above-average volume moves into an 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. >>5 Stocks Setting Up to Break Out Chesapeake Energy Chesapeake Energy (CHK) is a natural gas and oil exploration and production company engaged in the exploration, development and acquisition of properties for the production of natural gas and crude oil from underground reservoirs. This stock closed up 6% at $20.11 on Wednesday. Wednesday's Volume: 67.30 million Average Volume: 13.47 million Volume % Change: 430% Shares of CHK ripped higher after the company announced the retirement of Aubrey McClendon, its co-founder and CEO. >>4 Hot Stocks to Trade (or Not) From a technical perspective, CHK gapped higher here with heavy upside volume. This stock has been uptrending strong for the last month and change, with shares moving higher from its low of $16.15 to its intraday high of $21.20. During that move, shares of CHK have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of CHK within range of triggering a major breakout trade. That trade will hit if CHK manages to clear some near-term overhead resistance at $21.55 with high volume. At last check, CHK closed off its intraday high but still above its daily low of $19.90.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV