DELAFIELD, 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.
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Major moves in volume can signal unusual activity, such as
or
-- 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
several stocks rising on unusual volume today.
Ameris Bancorp
Ameris Bancorp
(
) provides a range of banking services to its retail and commercial customers who are primarily concentrated in selected markets in Georgia, Alabama, Florida and South Carolina. This stock closed up 4.7% at $18.75 in Monday's trading session.
Monday's Volume: 313,000
Three-Month Average Volume: 91,240
Volume % Change: 204%
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From a technical perspective, ABCB spiked sharply higher here right above some near-term support at $17.52 and back above its 50-day moving average of $18.63 with strong upside volume. This move is quickly pushing shares of ABCB within range of triggering a major breakout trade. That trade will hit if ABCB manages to take out some near-term overhead resistance at $18.98 to its 52-week high at $19.84 with high volume.
Traders should now look for long-biased trades in ABCB as long as it's trending above Monday's low of $17.90 or above more support at $17.52 and then once it sustains a move or close above those breakout levels with volume that hits near or above 91,240 shares. If that breakout hits soon, then ABCB will set up to enter new 52-week-high territory above $19.84, which is bullish technical price action. Some possible upside targets off that move are $23 to $25.
Catamaran
Catamaran
(
) is a provider of pharmacy benefit management services and health care IT solutions to the healthcare benefit management industry. This stock closed up 1.1% at $49.65 in Monday's trading session.
Monday's Volume: 3.83 million
Three-Month Average Volume: 1.53 million
Volume % Change: 136%
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From a technical perspective, CTRX trended modestly higher here with above-average volume. This stock has been uptrending strong for the last month, with shares moving higher from its low of $44.44 to its recent high of $50.82. During that uptrend, shares of CTRX have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of CTRX within range of triggering a near-term breakout trade. That trade will hit if CTRX manages to take out some near-term overhead resistance levels at $50 to $50.82, and then once it clears its 50-day at $51.21 to its 200-day at $52.26 with high volume.
Traders should now look for long-biased trades in CTRX as long as it's trending above near-term support at $48 or $47 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.53 million shares. If that breakout hits soon, then CTRX will set up to re-test or possibly take out its next major overhead resistance levels at $56 to $57. .
Petroleo Brasilerio Petrobras
Petroleo Brasilerio Petrobras
(
) operates as an integrated oil and gas company in Brazil. This stock closed up 9% at $17.35 in Monday's trading session.
Monday's Volume: 46.17 million
Three-Month Average Volume: 16.10 million
Volume % Change: 147%
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From a technical perspective, PBR gapped sharply higher here back above its 200-day moving average of $15.98 with heavy upside volume. This move also pushed shares of PBR into breakout territory, since the stock took out some near-term overhead resistance levels or $16.50 to $16.67.
Traders should now look for long-biased trades in PBR as long as it's trending above some its 200-day at $15.98 or its 50-day at $15.26 and then once it sustains a move or close above Monday's high of $17.45 with volume that hits near or above 16.10 million shares. If we get that move soon, then PBR will set up to re-test or possibly take out its next major overhead resistance levels at $19.65 to $20.41.
Burger King Worldwide
Burger King Worldwide
(
), through its subsidiaries, operates fast food restaurants. This stock closed up 5.7% to $20.90 in Monday's trading session.
Monday's Volume: 1.54 million
Three-Month Average Volume: 459,915
Volume % Change: 136%
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From a technical perspective, BKW ripped higher here right off its 50-day moving average of $19.67 with strong upside volume. This move pushed shares of BKW into breakout territory, since the stock took out some near-term overhead resistance at $20.70. Shares of BKW are now quickly moving within range of triggering another big breakout trade. That trade will hit if BKW manages to take out Monday's high of $21.28 and its all-time high at $21.73 with high volume.
Traders should now look for long-biased trades in BKW as long as it's trending above its 50-day at $19.67 or above its 200-day at $19 and then once it sustains a move or close above those breakout levels with volume that hits near or above 459,915 shares. If that breakout hits soon, then BKW will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $25 to $27.
Radware
Radware
(
) develops, manufactures and sells application delivery solutions that provide end-to-end availability, performance and security of business-critical network applications. This stock closed up 4.1% to $14.77 in Monday's trading session.
Monday's Volume: 583,000
Three-Month Average Volume: 192,674
Volume % Change: 214%
From a technical perspective, RDWR spiked higher here back above its 50-day moving average of $14.42 with above-average volume. This move is starting to push shares of RDWR within range of triggering a big breakout trade. That trade will hit if RDWR manages to take out some near-term overhead resistance levels at $15.45 to some past overhead resistance at $16.11 with high volume.
Traders should now look for long-biased trades in RDWR as long as it's trending above Monday's low of $14.15 or above $14 and then once it sustains a move or close above those breakout levels with volume that hits near or above 192,674 shares. If we get that breakout soon, then RDWR will set up to re-fill some of its previous gap down zone from April that started just above $19.
To see more stocks rising on unusual volume, check out the
Stocks Rising on Unusual Volume
portfolio on Stockpickr.
-- Written by Roberto Pedone in Delafield, Wis.
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At the time of publication, author had no positions in stocks mentioned. Roberto Pedone, based out of Delafield, 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
CNBC.com
and
Forbes.com
. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.
