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.
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
NuStar GP Holdings
) owns general partner and limited partner interests in NuStar Energy, which engages in the terminaling and storage of petroleum products, transportation of petroleum products and anhydrous ammonia, and petroleum refining and marketing. This stock closed up 7% at $25.43 in Monday's trading session.
Monday's Volume: 404,000
Three-Month Average Volume: 235,914
Volume % Change: 105%
From a technical perspective, NSH soared higher here and broke out above some near-term overhead resistance levels at $24.28 to $24.66 with above-average volume. This stock has been uptrending strong for the last month and change, with shares moving higher from its low of $19.34 to its intraday high of $25.52. During that move, shares of NSH have been consistently making higher lows and higher highs, which is bullish technical price action.
Traders should now look for long-biased trades in NSH as long as it's trending above Monday's low of $23.50 and then once it sustains a move or close above Monday's high of $25.52 with volume that's near or above 235,914 shares. If we get that move soon, then NSH will set up to re-test or possibly take out its next major overhead resistance levels at $26.82 to its 200-day at $26.95. Any high-volume move above those levels will then give NSH a chance to tag $30 to $32.
) is an exploration-stage company engaged in oil and gas acquisitions, exploration, development and production activities. This stock closed up 2.8% at $11.03 in Monday's trading session.
Monday's Volume: 949,000
Three-Month Average Volume: 589,711
Volume % Change: 75%
From a technical perspective, SYRG trended up here right above some near-term support at $10.54 and into new 52-week-high territory with above-average volume. This stock has been uptrending strong for the last five months, with shares soaring higher from its low of $6.23 to its intraday high and new 52-week high at $11.40. During that uptrend, shares of SYRG have been consistently making higher lows and higher highs, which is bullish technical price action.
Traders should now look for long-biased trades in SYRG as long as it's trending above some key near-term support at $10.54 and then once it sustains a move or close above its 52-week high at $11.40 with volume that's near or above 589,711 shares. If we get that move soon, then SYRG will set up to enter new 52-week-high territory above, which is bullish technical price action. Some possible upside targets off that move are $13 to $15.
To see more stocks rising on unusual volume, check out the
portfolio on Stockpickr.
-- Written by Roberto Pedone in Delafield, Wis.
Follow Stockpickr on
and become a fan on
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.