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.
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 markets diagnostic products for the visualization and detection of disorders of the gastrointestinal tract. Its products include Capsule Endoscopy and pH Monitoring. This stock is trading up 5.2% at $16.73 in recent trading.
Today's Volume: 90,000
Average Volume: 91,753
Volume % Change: 66%
Shares of GIVN are trending higher today after Bloomberg.com reported that a person with direct knowledge said Permira Holdings is among private equity firms considering buying the company.
From a technical perspective, GIVN is ripping higher here back above its 200-day moving average of $16.53 with decent volume. This move has started to push shares of GIVN into its gap down zone from earlier this month that started at $18.50.
Traders should now look for long-biased trades in GIVN as long as it's trending above today's low of $16.42 with strong upside volume flows. I would consider any upside volume day that registers near or above its three-month average action of 91,753 shares as bullish. If GIVN can maintain that trend, then look for this stock to re-fill that gap down zone back to its 50-day moving average of $17.61, or back towards $18.50.
, which owns and operates self-service Redbox and coin-counting kiosks, is trading up 2.5% at $53.40 in recent trading.
Today's Volume: 1.16 million
Average Volume: 1.04 million
Volume % Change: 115%
From a technical perspective, CSTR is trending higher here with above-average volume. This move is quickly pushing shares of CSTR within range of triggering a major breakout trade. That trade will hit if CSTR takes out its 200-day moving average at $53.95 and then once it clears more overhead resistance at $54.16 with high volume.
Traders should now look for long-biased trades in CSTR as long as it's trending above today's low of $52.60, and then once it sustains a move or close back above those breakout levels with volume that hits near or above 1.04 million shares. If that breakout hits soon, then CSTR will set up to re-fill its previous gap down zone from last July that started above $60.
NGL Energy Partners
NGL Energy Partners
operates a vertically integrated propane business with three operating segments: retail propane, wholesale supply and marketing, and midstream. This stock is trading up 3.7% at $25.25 in recent trading.
Today's Volume: 105,000
Average Volume: 100,387
Volume % Change: 149%
From a technical perspective, NGL is moving higher here right above its recent breakout level of $24.11 with above-average volume. This move is quickly pushing shares of NGL within range of triggering another near-term breakout trade. That trade will hit if NGL manages to clear some near-term overhead resistance levels at $25.50 to $26.19 with high volume.
Traders should now look for long-biased trades in NGL as long as it's trending above $24.11, and then once it sustains a move or close above those breakout levels with volume that hits near or above 100,387 shares. If that breakout triggers soon, then NGL will set up to re-test or possibly take out its next major overhead resistance level at $26.79. Any high-volume move above $26.79 will then put $27.61 into focus for shares of NGL.
To see more stocks rising on unusual volume, check out the
portfolio on Stockpickr.
-- Written by Roberto Pedone in Winderemere, Fla.
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At the time of publication, author had no positions in stocks mentioned. Roberto Pedone, based out of Windermere, Fla., 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.