WINDERMERE, Fla. (
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 a provider of government-outsourced services specializing in the management of correctional, detention and mental health facilities in the United States, Australia, South Africa, the United Kingdom and Canada. This stock is trading up 4.4% at $28.24 in recent trading.
Today's Volume: 557,000
Average Volume: 393,703
Volume % Change: 149%
Shares of GEO are spiking higher today after the company reported an increase in third quarter revenue, but a dip in quarterly profits.
From a technical perspective, GEO is ripping higher here back above its 50-day moving average of $27.57 with above average volume. This move is quickly pushing GEO within range of triggering a major breakout trade. That trade will hit once GEO manages to take out some near-term overhead resistance at $28.62 with high volume.
Traders should now look for long-biased trades in GEO as long as it's trending above its 50-day at $27.57, and then once it sustains a move or close above $28.62 with volume that hits near or above 393,703 shares. If that breakout triggers soon, then GEO will set up to trend north of $30 in the near future.
( TEA) is a specialty retailer of premium loose-leaf teas, authentic artisanal teawares and other tea-related merchandise. This stock is trading up 5.9% at $10.94 in recent trading.
Today's Volume: 164,000
Average Volume: 133,427
Volume % Change: 104%
From a technical perspective, TEA is bouncing sharply higher here right around some previous support levels at around $10.75 to $10.96 with above-average volume. This bounce is coming after shares of TEA have recently dropped sharply from $13.78 to today's low of $10.27. That sharp plunge lower has pushed TEA into oversold territory, since its relative strength index (RSI) reading is now 37. Oversold can always get more oversold, but this bounce today could be signaling that TEA is reading to spike significantly higher.
Traders should now look for long-biased trades in TEA as long as it's trending above today's low of $10.27, and then once it sustains a move or close above some near-term overhead resistance levels at $11.32 to $12.28 with high volume. Look for volume on that move that hits near or above 133,427 shares. If we get that move from TEA, then this stock could bounce back towards $13 to 13.78 or possibly even $14.50 in the near future.
owns and operates retail and wholesale propane supply, marketing and distribution business. It also operates two natural gas storage facilities, a liquefied petroleum gas storage facility and a natural gas liquids business. This stock is trading up 5.4% at $20.06 in recent trading.
Today's Volume: 539,000
Average Volume: 386,629
Volume % Change: 130%
From a technical perspective, NRGY is bouncing sharply off some near-term support at $19 here with above-average volume. This move is quickly pushing NRGY within range of triggering of triggering a near-term breakout trade. That trade will hit once NRGY takes out some near-term overhead resistance levels at $19.94 to $20.42 with high volume.
Traders should now look for long-biased trades in NRGY as long as it's trending above $19, and then once it sustains a move or close above those breakout levels with volume that hits near or above 386,629. If that breakout triggers soon, then NRGY will set up to re-fill its previous gap down zone from September that started around $21.66. Any high-volume move above $21.66 would then put $22.75 into focus for NRGY.
develops and delivers innovative technologies, products and services at each stage of the entertainment industry, including content creation, content distribution and content playback. This stock is trading up 1.9% at $34.75 in recent trading.
Today's Volume: 1.06 million
Average Volume: 765,048
Volume % Change: 82%
From a technical perspective, DLB is moving back above its 50-day moving average of $33.24 here with above-average volume. This move has also pushed DLB above some near-term overhead resistance at $33.90. This action is also pushing DLB within range of triggering a major breakout trade. That trade will hit once DLB manages to take out $35.82 to $35.95, and then once it clears its 200-day at $37.42 with high volume.
Traders should now look for long-biased trades in DLB as long as it's trending above its 50-day at $33.24, and then once it sustains a move or close above those breakout levels with volume that hits near or above 765,048 shares. If that breakout triggers soon, then DLB will set up to re-test or possibly take out its next major overhead resistance levels at $39.18 to $41.
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.