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. Many times when above average volume moves into 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 the owner of several brands and businesses that provide information, tools, advice, products and services for critical transactions in consumers' lives. This stock is trading up 1.2% at $15.82 in recent trading.
Today's Volume: 73,000
Average Volume: 54,761
Volume % Change: 100%
From a technical perspective, TREE is moving modestly higher here with above average volume. This stock has been uptrending strong for the past six months, with shares exploding higher from $6.75 to today's high of $16.50 a share. During that move, shares of TREE have consistently made higher lows and higher highs, which is bullish technical price action. That move has now pushed TREE into breakout territory and 52-week territory, since the stock has take out some near-term overhead resistance at $15.80.
Traders should now look for long-biased trades in TREE as long as it's trending above some key near-term support at $14 with strong upside volume flows. I would consider any upside volume day that registers near or above 54,761 shares as bullish. If TREE holds that $14 level and takes out $16.50 soon, then this stock has a great chance of tagging $20.
is the owner and operator of liquefied natural gas carriers and floating storage regasification units. This stock is trading up 3.6% at $40.20 in recent trading.
Today's Volume: 706,000
Average Volume: 585,520
Volume % Change: 100%
From a technical perspective, GLNG is ripping higher here right off its 50-day moving average of $38.24 with heavy volume, and its pushing back above its 200-day moving average of $39.52. T his move is quickly pushing GLNG within range of triggering a major breakout trade. That trade will hit once GLNG takes out some near-term overhead resistance at $41 to $41.78 with high volume.
Traders should now look for long-biased trades in GLNG as long as its trending above its 50-day, and then once it sustains a move or close above $41 to $41.78 with volume that's near or above 585,520 shares. If that breakout triggers soon, then GLNG has a great chance of re-testing and possibly taking out its next major overhead resistance levels at $44 to $47.45.
is a designer, manufacturer and distributor of footwear and accessories for men, women and children. This stock is trading up 4.4% at $17.03 in recent trading.
Today's Volume: 1.5 million
Average Volume: 1.8 million
Volume % Change: 50%
From a technical perspective, CROX is ripping higher here with decent volume as the stock bounces off some near-term support at $16.14. That near-term support sits just above CROX's 50-day moving average of $15.80. This spike in CROX is quickly pushing the stock within range of triggering a major breakout trade. That trade will trigger once CROX takes out some near-term overhead resistance at $17.38 to $17.57, and then $18.14 to $18.23 with high volume.
Traders should now look for long-biased in CROX as long as it's trending above its 50-day at $15.80, and then once it takes out those breakout levels with volume that's near or above 1.8 million shares. If that breakout triggers soon, then CROX will have a great chance to re-test or possibly take out its next major overhead resistance levels at $20.50 to $22.59.
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 stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.