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
Allscripts Healthcare Solutions
Allscripts Healthcare Solutions
is a provider of clinical, financial, connectivity and information solutions and related professional services to hospitals, physicians and post-acute organizations. This stock is trading up 4% at $12.94 in recent trading.
Today's Volume: 5.2 million
Average Volume: 3.2 million
Volume % Change: 223%
Shares of MDRX are soaring today after Bloomberg News, citing people familiar with the matter, reported that
was hired by Allscripts to explore a sale of the company.
From a technical perspective, MDRX is gapping higher here with above-average volume. This move is quickly pushing MDRX within range of triggering a near-term breakout trade. That trade will hit once MDRX manages to take out its 200-day moving average of $14.09 with high volume.
Traders should now look for long-biased trades in MDRX as long as it's trending above $12.50, and then once it sustains a move or close above $14.09 with volume that's near or above 3.2 million shares. If that breakout triggers soon, then look for MDRX to fill some of its previous gap from April that started near $16.
designs, manufactures and markets a line of linear analog integrated circuits for companies worldwide. This stock is trading up 3.3% at $32.90 in recent trading.
Today's Volume: 3.1 million
Average Volume: 1.9 million
Volume % Change: 180%
From a technical perspective, LLTC is trending notably higher here back above its 50-day moving average of $32.58 with above-average volume. This move is quickly pushing LLTC within range of challenging its 52-week high at $34.50.
Traders should now look for long-biased traders in LLTC as long as it's trending above its 50-day at $32.58 with strong upside volume flows. I would consider any upside volume day that registers near or above its three-month average volume of 1.9 million shares as bullish. IF LLTC can maintain that trend, then this stock will setup to re-test or possible take out its 52-week high of $34.50 in the near future.
develops, markets, and supports enterprise portal applications that enable companies to unify their e-business infrastructure and conduct both interactions and transactions with employees, partners and customers. This stock is trading up 6.9% at $10.02 in recent trading.
Today's Volume: 166,000
Average Volume: 146,717
Volume % Change: 104%
From a technical perspective, BVSN is bouncing hard here right off some near-term support at $9.25 with above-average volume. This bounce is also coming right above its 50-day moving average of $8.74.
Traders should now look for long-biased trades once BVSN manages to trigger its next major breakout trade. That trade will hit once BVSN clears some near-term overhead resistance at $11.96 with high volume. Traders should look for long-biased trades as long as BVSN is trending above $9.25, and then once it sustains a move or close above $11.96 with volume that's near or above 146,717 shares. If that breakout triggers soon, then look for BVSN to re-test or possibly take out its next major overhead resistance levels at $13.19 to $14.19, or possibly even $14.99.
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.