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Professional traders that run 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."
>>5 Stocks Setting Up to Break Out
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 a
number of stocks rising on unusual volume today.
ChipMOS Technologies(IMOS) is a provider of semiconductor testing and assembly services. The stock is trading up 3.1% at $16.96 in recent trading.
Today's Volume: 1 million
Average Volume: 182,741
Volume % Change: 728%
From a technical perspective, IMOS is trading within range of triggering another big breakout. This stock has been breaking out on huge volume for the past couple of weeks. Now, the next big breakout will trigger once today's high of $17.88 is taken out with volume.
Look for a sustained high-volume move and close above that level that registers near or above 182,741 shares. If we get that action soon, then look for IMOS to tag $20 very quickly.
I also featured ChipMOS in Wednesday's "
7 Stocks Rising on Unusual Volume."
Chemical Financial(CHFC) is a financial holding company. Chemical Financial, through its subsidiary bank, Chemical Bank, offers a range of traditional banking and fiduciary products and services. The stock is trading up 4% at $23.36 in recent trading.
Today's Volume: 117,000
Average Volume: 58,430
Volume % Change: 215%
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From a technical perspective, CHFC is spiking nicely today on above average volume. This move has now pushed CHFC within range of a number or key technical breakout levels.
Traders should watch for the next big breakout to trigger once CHFC takes out some near-term overhead resistance at $23.78 to $24.11 with high volume. Look for volume on that move that's near or well above 58,430 shares.
Northwest Pipe Company
Northwest Pipe Company(NWPX) is a manufacturer of large-diameter, high-pressure steel pipeline systems for use in water infrastructure applications, related to drinking water systems. This stock is trading up 5.8% at $22.77 in recent trading.
Today's Volume: 101,000
Average Volume: 72,393
Volume % Change: 87%
From a technical perspective, NWPX are ripping higher today right off of some previous support at around $21.31 with decent volume.
Traders should now look for long-biased trades once NWPX triggers its next
big breakout on a high-volume move above its 50-day
moving average of $23.41. Look for volume on that move that's near or well above 72,393 shares.
Research In Motion
Research In Motion(RIMM) is a designer, manufacturer and marketer of wireless solutions for the worldwide mobile communications market. This stock is trading up 5.3% at $14.16 in recent trading.
Today's Volume: 19.3 million
Average Volume: 21.98 million
Volume % Change: 54%
Shares of RIMM are spiking higher today off of rumors that Samsung Electronics is looking to make a minority investment (possibly $1.5 billion) in the company and to develop phones based on its "BBIO" operating system.
From a technical perspective, RIMM recently found some buying interest at $12.83, which happens to be very close to a previous support zone at $12.45.
Traders should only look for long baised trades in RIMM if this stock can manage to get back above its 50-day moving average of $15.24 on high-volume and above some near-term overhead resistance at $15.45. If shares of RIMM can clear those levels with volume, then this stock could have some significant upside. Look for volume on that move that's near or well above 21,978,200 shares.
Research In Motion, one of
Greenlight Capital's holdings, shows up on a list of
10 Stocks Owned by the Best Fund Managers.
OmniVision Technologies(OVTI) designs, develops and markets semiconductor image-sensor devices. This stock is trading up 3.8% at $19.21 in recent trading.
Today's Volume: 3.3 million
Average Volume: 2.4 million
Volume % Change: 61%
From a technical perspective, OVTI is spiking strong today with high-volume. This move is now pushing OVTI within range of taking out some key technical resistance levels. That first level will be its 200-day moving average of $19.43, and that second level is its gap down day high from last September near $20.
high-volume move and close above those levels should set this stock up to start re-filling some of that gap back towards $26. Look for volume on a run above those levels that's near or well above 2,351,400 shares.
In the most recently reported quarter,
Discovery Capital Management increased its stake in OmniVision by 11.4%, to 3.88 million shares.
EZchip Semiconductor(EZCH) is a fabless semiconductor company that is engaged in the development and marketing of Ethernet network processors for networking equipment. This stock is trading up 3.4% at $44.41 in recent trading.
Today's Volume: 260,000
Average Volume: 264,872
Volume % Change: 51%
From a technical perspective, EZCH recently broke out above some major past overhead resistance at $37.62 on decent volume. Since triggering that breakout, EZCH has skyrocketed towards its current price of around $44.
This stock is breaking out again today to a new
52-week high on decent volume. As long as this stock doesn't see any high-volume downside reversals in the near-term, then it should be well on its way to hitting $50.
EZchip shows up on a recent list of
10 Small-Cap Stocks Poised to Rise, History Shows.
MB Financial(MBFI) is a financial holding company, which has its primary market is the Chicago metropolitan area. This stock is trading up 2.9% at $21.66 in recent trading.
Today's Volume: 278,000
Average Volume: 260,336
Volume % Change: 82%
From a technical perspective, MBFI recently triggered a breakout trade once this stock took out some near-term overhead resistance at $20.91 with decent volume. This stock has also cleared some past overhead resistance at $21.21 on above average volume.
As long MBFI is trending above those levels, then this stock should re-test its next major overhead resistance level at $22.45 in the very near future. Any high-volume move over $22.45 will set this stock up to run towards $26 to $28.
MB Financial shows up on a list of
5 Bank Stocks Profiting on the Most Profitable Loans.
Expeditors International of Washington
Expeditors International of Washington(EXPD) is engaged in the business of providing global logistics services. The stock is trading up 3.1% at $45.95 in recent trading.
Today's Volume: 2.3 million
Average Volume: 1.55 million
Volume % Change: 126%
From a technical perspective, EXPD has started to trigger a big breakout trade today now that this stock is moving above some near-term overhead resistance at $45 to $45.67 with monster volume.
Traders should continue to look for long-biased trades in EXPD as long as this stock is trending above those key breakout levels with strong upside volume flows. If we get a strong close today, then look for EXPD to re-test its next major overhead resistance levels at $47.444 to $50.50 in the very near future.
To see more stocks rising on unusual volume, check out the
Stocks Rising On Unusual Volume portfolio on Stockpickr.
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