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 is a marketing company that sells weight management, nutritional supplement, energy, sports and fitness products and personal care products. This stock is trading up 7.6% at $28.04 in recent trading.
Today's Volume: 9.16 million
Average Volume: 3.57 million
Volume % Change: 512%
Shares of HLF are soaring today after the company said it would hold an analyst and investor meeting on Jan. 10 at 9:00 a.m. in New York, which will be a comprehensive response to investor questions on its business model.
From a technical perspective, HLF is bouncing strongly to the upside here off oversold levels with heavy volume. Shares of HLF have plunged during the last few weeks from $47.45 to its recent low of $24.24. That move has pushed HLF into oversold territory, since its relative strength index (RSI) reading is now 18.05. Oversold can always get more oversold, but it's also an area where a stock can experience a powerful snapback rally.
Traders should now look for long-biased trades in HLF as long as it's trending above today's low of $26.31 with strong upside volume flows. I would consider any upside volume day that registers near or above its three-month average volume of 3.57 million shares as bullish. If HLF can maintain that trend above $26.31 with strong volume, then this stock has a great chance to rebound back above $32.50 in the near future.
Research In Motion
This company designs, manufactures, and markets wireless solutions for the mobile communications market worldwide. It provides platforms and solutions for access to information, including email, voice, instant messaging. This stock is trading up 8.2% at $11.48 in recent trading.
Today's Volume: 39.23 million
Average Volume: 37.08 million
Volume % Change: 95%
From a technical perspective, RIMM is spiking higher here right above its 50-day moving average of $10.17 with above-average volume. This stock recently gapped down and sold off from around $14 to its recent low of $10.59 with heavy downside volume. This bounce today is now pushing shares of RIMM within range of breaking out and trading back into that gap down zone. That breakout trade will hit once RIMM clears $12.50 with high volume.
Traders should now look for long-biased trades in RIMM as long as it's trending above its 50-day at $10.17, and then once it sustains a move or close above $12.50 with volume that hits near or above 37.08 million shares. If that breakout hits soon, then RIMM will set up to re-fill some of that gap down zone that started at around $14.
Nu Skin Enterprises
This is a global direct selling company, which develops and distributes innovative, premium-quality personal care products and nutritional supplements that are sold under the Nu Skin and Pharmanex brands. This stock is trading up 2.7% at $33.95 in recent trading.
Today's Volume: 1.95 million
Average Volume: 1.36 million
Volume % Change: 138%
From a technical perspective, NUS is trending higher here right above some near-term support at $32.36 with above-average volume. This stock recently plunged big from around $45 to its recent low of $32.36 with heavy downside volume. That move has now pushed shares of NUS into oversold territory, since its current relative strength index (RSI) is now 23.70. Oversold can always get more oversold, but it's also an area that a stock can experience a monster snapback rally if buyers move in.
Traders should now look for long-biased trades in NUS as long as it's trending above $32.36 with strong upside volume flows. I would consider any upside volume day that registers near or above its three-month average action of 1.36 million shares as bullish. If NUS can maintain a trend above $32.36 with strong volume, then this stock will set up to re-test or possibly take out its next major overhead resistance level at $36.
If that breakout hits soon, then ENH will set up to re-test or possibly take out its next major overhead resistance levels at $46 to $48.
This company is engaged in the development, manufacture and marketing of performance ingredients and products for the food, nutritional, feed, pharmaceutical and medical sterilization industries. This stock is trading up 5.3% at $38.06 in recent trading.
Today's Volume: 132,000
Average Volume: 78,210
Volume % Change: 174%
From a technical perspective, BCPC is ripping higher here right off some near-term support at $36 with above-average volume. This stock has been uptrending strongly for the last two months, with shares moving higher from a low of $31.04 to its intraday high of $38.07. During that move, shares of BCPC have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed BCPC within range of triggering a major breakout trade. That trade will hit once BCPC takes out some near-term overhead resistance at $38.21 with high volume.
Traders should now look for long-biased trades in BCPC as long as it's trending above some key support at $35, and then once it sustains a move or close above $38.21 with volume that hits near or above 78,210 shares. If that breakout hits soon, then BCPC will set up to re-test or possibly take out its next major overhead resistance levels at $42 to $42.58.
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.