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
This company manufactures & sells 3D content-to-print solutions & 3D printing systems. This stock is trading up 11% at $46.35 in recent trading.
Today's Volume: 2.87 million
Average Volume: 1.57 million
Volume % Change: 217%
From a technical perspective, DDD is exploding higher here right off some near-term support at $42 with monster upside volume. This move is quickly pushing DDD within range of triggering a major breakout trade. That trade will hit once DDD manages to take out its 52-week high of $46.92 with high volume.
Traders should now look for long-biased trades in DDD once it manages to sustain a move or close above $46.92 with volume that hits near or above 1.57 million shares. If that breakout triggers soon, then DDD will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets are $50 to $60 in the near future.
This company operates a social networking website. Millions of people use Facebook everyday to keep up with friends, upload an unlimited number of photos, share links and videos, and learn more about the people they meet. This stock is trading up 7.8% at $25.89 in recent trading.
Today's Volume: 90.97 million
Average Volume: 54.73 million
Volume % Change: 149%
From a technical perspective, FB is ripping higher here with monster upside volume and its moving into breakout territory above some near-term overhead resistance at $24.25. This move has now pushed FB into its previous gap down zone from last July that started around $27.
Traders should now look for long-biased trades in FB as long as it's trending near or above its breakout level of $24.25 with strong upside volume flows. I would consider any upside volume day that registers near or above 54.73 million shares as bullish. If FB can maintain this trend, then this stock will set up to re-test or possibly take its next major overhead resistance levels at $27 to $29.50.
This is a manufacturer of three-dimensional (3D) printers and high-performance rapid prototyping (RP) systems for the office-based RP and direct digital manufacturing (DDM) markets. This stock is trading up 6.5% at $75.41 in recent trading.
Today's Volume: 859,000
Average Volume: 621,498
Volume % Change: 114%
From a technical perspective, SSYS is soaring higher here right off some near-term support at $70 with above-average volume. This move has also pushed SSYS into major breakout territory now that shares are moving above its previous 52-week high of $73.32.
Traders should now look for long-biased trades in SSYS as long as it's trending above its previous breakout level of $73.32 with strong upside volume flows. I would consider any upside volume day that registers near or above 621,498 shares as bullish. If SSYS can maintain this trend, then the stock will set up to trade north of $80 in the near future.
This company is a provider of data and information management software applications and related services. This stock is trading up 4.3% at $66.11 in recent trading.
Today's Volume: 612,000
Average Volume: 478,479
Volume % Change: 83%
From a technical perspective, CVLT is moving higher here right off some near-term support at $62.50 with above-average volume. This move has also started to push CVLT into breakout territory, since the stock is flirting with its 52-week high of $66.62. At last check, CVLT has hit an intraday high of $67.06 with volume that's well above its three-month average volume of 478,479 shares.
Traders should now look for long-biased trades in CVLT as long as it's trending near or above its 52-week high of $66.62 with strong upside volume flows. I would consider any upside volume day that registers near or above 478,479 shares as bullish. If CVLT can maintain that trend, then this stock will set up to trade north of $70 in the near future.
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.