3 Stocks Spiking on Big Volume
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.
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.
With that in mind, let's take a look at several stocks rising on unusual volume recently.
Estee Lauder Companies
- Monday's Volume: 3.39 million
- Three-Month Average Volume: 2.32 million
- Volume % Change: 277%
Estee Lauder Companies (EL) - Get Report manufactures, markets and sells skin care, makeup, fragrance and hair care products worldwide. This stock is trading up 7.7% to $86.73 in Monday's trading session.
From a technical perspective, Estee Lauder Companies is gapping up sharply higher here and breaking out above some near-term overhead resistance at $85.23 with strong upside volume flows. This big gap to the upside has also pushed shares of Estee Lauder Companies back above both its 200-day and 20-day moving averages. Market players should now look for a continuation move to the upside in the short-term if this stock manages to take out Monday's intraday high of $88.10 a share with high volume.
Traders should now look for long-biased trades in Estee Lauder Companies as long as it's trending above Monday's intraday low of $84.64 a share and then once it sustains a move or close above Monday's intraday high of $88.10 with volume that hits near or above 2.32 million shares. If that move gets underway soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $90 to $91.40, or even $95 to $100 a share.
Acadia Pharmaceuticals
- Monday's Volume: 1.10 million
- Three-Month Average Volume: 1.29 million
- Volume % Change: 135%
Acadia Pharmaceuticals (ACAD) - Get Report , a biopharmaceutical company, focuses on the development and commercialization of small molecule drugs that address unmet medical needs in neurological and related central nervous system disorders. This stock is trading up 8% to $37.62 in Monday's trading session.
From a technical perspective, Acadia Pharmaceuticals is ripping sharply higher here right off its 50-day moving average of $36.08 a share with strong upside volume flows. This stock has been uptrending over the last few weeks, with shares moving higher off its low of $30.03 to its recent high of $38.05 a share. During that uptrend, shares of Acadia Pharmaceuticals have been making mostly higher lows and higher highs, which is bullish technical price action. This spike to the upside on Monday is now quickly pushing this stock within range of triggering a near-term breakout trade. That trade will trigger if this stock manages to take out some near-term overhead resistance at $38.05 a share with high volume.
Traders should now look for long-biased trades in Acadia Pharmaceuticals as long as it's trending above its 50-day moving average of $36.08 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.29 million shares. If that breakout kicks off soon, then this stock will set up to retest or possibly take out its next major overhead resistance levels at $40 to $44, or even $48 a share.
Hewlett-Packard
- Monday's Volume: 20.02 million
- Three-Month Average Volume: 14.89 million
- Volume % Change: 228%
Hewlett-Packard (HPQ) - Get Report , together with its subsidiaries, provides products, technologies, software, solutions and services to individual consumers and small- and medium-sized businesses, as well as to the government, health and education sectors worldwide. This stock is trading up 12.3% to $13.72 in Monday's trading session.
From a technical perspective, Hewlett-Packard is ripping sharply higher here right off its 50-day moving average of $12.46 and back above its 20-day moving average of $12.98 with heavy upside volume flows. This high-volume spike to the upside on Monday has also pushed shares of Hewlett-Packard into breakout territory, since the stock has cleared some near-term overhead resistance at $13.52 a share. Market players should now look for a continuation move to the upside in the short-term if this stock manages to take out some more key overhead resistance levels at $14. to its 200-day moving average of $14.22 a share with high volume.
Traders should now look for long-biased trades in Hewlett-Packard as long as it's trending above its 20-day moving average of $12.98 or above its 50-day moving average of $12.46 and then once it sustains a move or close above $14 to $14.22 with volume that hits near or above 14.89 million shares. If that move gets underway soon, then this stock will set up to re-test or possibly take out its net major overhead resistance levels at $16 to $17, or even $18 a share.
Disclosure: This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.