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
ECA Marcellus Trust
ECA Marcellus Trust
owns royalty interests in approximately eight producing horizontal natural gas wells producing from the Marcellus Shale formation, together with six additional wells that are undergoing completion operations. This stock is trading up 7.4% at $18.69 in recent trading.
Today's Volume: 321,000
Average Volume: 113,713
Volume % Change: 441%
From a technical perspective, ECT is ripping higher here right off its 200-day moving average of $17.41 with above-average volume. This move has started to push shares of ECT into breakout territory, since the stock has taken out some near-term overhead resistance levels at $18.40 to $18.48.
Traders should now look for long-biased trades in ECT as long as it's trending above $18.40 with strong upside volume flows. I would consider any upside volume day that registers near or above its three-month average action of 113,713 shares. If ECT can maintain that trend, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $19.50 to $19.91 and at $20.17 to $20.36. Any high-volume move above $20.36 will then put $22 to $23 into range for shares of ECT.
Susser Petroleum Partners
Susser Petroleum Partners
is engaged primarily in a fee-based wholesale distribution of motor fuels to SHC and third parties. This stock is trading up 3.1% at $27.55 in recent trading.
Today's Volume: 362,000
Average Volume: 59,356
Volume % Change: 559%
From a technical perspective, SUSP is trending higher here back above its 50-day moving average of $27.13 with above-average volume. This move is starting to push shares of SUSP within range of triggering a near-term breakout trade. That trade will hit if SUSP manages to take out some near-term overhead resistance levels at $28 to $29.29 and then once it takes out its all-time high at $30.12 with high volume.
Traders should now look for long-biased trades in SUSP as long as it's trending above its 50-day at $27.13, and then once it sustains a move or close above those breakout levels with volume that hits near or above 59,356 shares. If that breakout hits soon, then SUSP will set up to enter new all-time high territory above $30.12, which is bullish technical price action. Some possible upside targets off that breakout are $32 to $35.
designs, develops, manufactures and markets proprietary technology electronic components and systems for sale to car and truck original equipment manufacturers. This stock is trading up 2.5% at $15.85 in recent trading.
Today's Volume: 277,000
Average Volume: 128,857
Volume % Change: 222%
From a technical perspective, THRM is moving modestly higher here above some near-term support at $15 with above-average volume. This move is quickly pushing shares of THRM within range of triggering a near-term breakout trade. That trade will hit if THRM manages to take out some key overhead resistance levels at $16.18 to $16.50 with high volume.
Traders should now look for long-biased trades in THRM as long as it's trending above $15 or $14.50, and then once it sustains a move or close above those breakout levels with volume that hits near or above 128,857 shares. If that breakout triggers soon, then THRM will set up to re-test or possibly take out its next major overhead resistance levels at $17.74 to $18.18.
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.