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
-- 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
) develops, manufactures and commercializes therapeutic products for tissue protection, healing and repair. This stock closed up 7.2% to $32.60 in Monday's trading session.
Monday's Volume: 892,000
Three-Month Average Volume: 199,369
Volume % Change: 294%
From a technical perspective, ANIK gapped sharply higher here right above some near-term support at $30.23 with heavy upside volume. This stock has been uptrending strong for the last six months, with shares soaring higher from its low of $14.20 to its intraday high of $32.70. During that uptrend, shares of ANIK have been making mostly higher lows and higher highs, which is bullish technical price action. This move on Monday pushed shares of ANIK into new 52-week-high territory, since the stock took out some near-term overhead resistance at $32.32.
Traders should now look for long-biased trades in ANIK as long as it's trending above some near-term support at $30.23 and then once it sustains a move or close above Monday's high of $32.70 with volume that hits near or above 199,369 shares. If we get that move soon, then ANIK will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $37 to $40.
) is a research-and-development-focused biotechnology company that uses its robust chemistry-driven approach and drug discovery capabilities to create small molecule drugs in the infectious disease field. This stock closed up 6.1% at $24.83 in Monday's trading session.
Monday's Volume: 288,000
Three-Month Average Volume: 117,626
Volume % Change: 95%
From a technical perspective, ENTA ripped sharply higher here and broke out above some past overhead resistance at $24.29 with above-average volume. This stock has been uptrending strong for the last few weeks, with shares soaring higher from its low of $18.79 to its intraday high of $25.12. During that uptrend, shares of ENTA have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of ENTA within range of triggering another big breakout trade. That trade will hit if ENTA manages to take out Monday's high of $25.12 to its all-time high at $26.39 with high volume.
Traders should now look for long-biased trades in ENTA as long as it's trending above Monday's low of $23.44 or above $22 and then once it sustains a move or close above those breakout levels with volume that's near or above 117,626 shares. If that breakout hits soon, then ENTA will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $30 to $35.
To see more stocks rising on unusual volume, check out the
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
. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.