MADISON, 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
) is engaged in developing, manufacturing and marketing home beverage carbonation systems and related products. This stock is trading up 6.9% at $68.23 in recent trading.
Today's Volume: 1.41 million
Average Volume: 881,127
Volume % Change: 141%
Shares of SODA are ripping higher here after Barclays raised its price target on the stock to $100 based on prospects that sales will increase.
From a technical perspective, SODA is gapping up sharply higher here right off some near-term support at $62.50 with heavy upside volume. This move has started to push shares of SODA into breakout territory, since the stock has taken out some near-term overhead resistance at $66.69. Shares of SODA have also entered new 52-week-high territory and volume is well above its three-month average action of 881,127 shares.
Traders should now look for long-biased trades in SODA as long as it's trending above $66.69 with strong upside volume flows. I would consider any upside volume day that registers near or above its three-month average action of 881,127 shares as bullish. If SODA can maintain that trend, then this stock set up to break out to a new 52-week high above $69.25. One possible upside target for SODA off that breakout is its all-time high at $79.72.
) designs and delivers IT-enabled business solutions for its clients. It also designs and delivers technology-enabled business solutions for Global 2000 companies. This stock is trading up 3.8% to $43.35 in recent trading.
Today's Volume: 2.31 million
Average Volume: 2.10 million
Volume % Change: 84%
From a technical perspective, INFY is gapping higher here right above some near-term support at $41.06 with above-average volume. This move has started to push shares of INFY into breakout territory, since the stock has taken out some near-term overhead resistance levels at $43.47 to $43.61. At last check INFY has hit an intraday high of $44.58 and volume is well above its three-month average action of 2.10 million shares. This move is quickly pushing shares of INFY within range of triggering another major breakout trade. That trade will hit if INFY manages to take out its 50-day at $44.79 and its 200-day at $45.95 with high volume.
Traders should now look for long-biased trades in INFY as long as it's trending above $43, and then once it sustains a move or close above those breakout levels with volume that hits near or above 2.10 million shares. If that breakout triggers soon, then INFY will set up to re-fill some of its previous gap down zone from April that started at $54. Some possible upside targets if INFY gets into that gap with volume are $50 to $51.
) acquires, develops and operates industrial properties in major Sunbelt markets throughout the U.S. with an emphasis in the states of Florida, Texas, Arizona, California and North Carolina. This stock is trading up 1.1% at $59.47 in recent trading.
Today's Volume: 226,000
Average Volume: 175,689
Volume % Change: 1111%
From a technical perspective, EGP is bouncing modestly higher here right off some previous support at $58.60 with above-average volume. This stock has been downtrending badly for the last few weeks, with shares plunging from its high of $66.99 to its intraday low of $58.56. During that move, shares of EGP have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of EGP have entered oversold territory since its current relative strength index reading is 32.70. Oversold can always get more oversold, but shares of EGP could rebound sharply higher from current levels if that $58.60 level holds.
Traders should now look for long-biased trades in EGP as long as it's trending above today's low of $58.56, and then once it sustains a move or close above today's high of $60.18 with volume that's near or above 175,689 shares. If we get that move soon, then EGP will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average at $61.67 to $63.
) is a provider of integrated human resource services in China. This stock is trading up 1.3% to $60.81 in recent trading.
Today's Volume: 81,000
Average Volume: 66,083
Volume % Change: 100%
From a technical perspective, JOBS is bouncing modestly higher here right above its 50-day moving average at $59.07 with above-average volume. This move is quickly pushing shares of JOBS within range of triggering a near-term breakout trade. That trade will hit if JOBS manages to take out some near-term overhead resistance levels at $61 to its 52-week high at $61.80 with high volume.
Traders should now look for long-biased trades in JOBS as long as it's trending above its 50-day at $59.07, and then once it sustains a move or close above those breakout levels with volume that hits near or above 66,083 shares. If that breakout triggers soon, then JOBS will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $64 to $69.
To see more stocks rising on unusual volume, check out the
portfolio on Stockpickr.
-- Written by Roberto Pedone in Madison, Wis.
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At the time of publication, author had no positions in stocks mentioned. Roberto Pedone, based out of Madison, 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.