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
is engaged in building products to create utility for users, developers, and advertisers. This stock is trading up 6.4% at $21.62 in recent trading.
Today's Volume: 44.5 million
Average Volume: 42.2 million
Volume % Change: 50%
Shares of FB are ripping higher today after Topeka Capital reiterated its buy rating and $36 price target on the stock.
From a technical perspective, FB is bouncing sharply higher here right around some near-term support at $19.80 with above-average volume. This move is also pushing FB back above its 50-day moving average of $21.30. Traders should now look for long-biased trades in FB once it manages to trigger its next major breakout trade. That trade will hit once FB takes out some near-term overhead resistance at $23.37 to around $25 with high volume.
Traders should now look for long-biased trades in FB as long as its trending above its 50-day, and then once it sustains a move or close above those breakout levels with volume that's near or above 42.2 million shares. If that breakout triggers soon, then FB will have an excellent chance to re-fill its previous gap and trade up towards $27.50 to $30.
Facebook was also featured this week in "
is engaged in the development of applications, services and other technologies for the Internet in China. This stock is trading up 2.6% at $56.43 in recent trading.
Today's Volume: 988,000
Average Volume: 812,077
Volume % Change: 70%
From a technical perspective, NTES is bouncing strong here with above-average volume right above its 50-day moving average of $52.12. This move is quickly pushing NTES within range of triggering a near-term breakout trade. That trade will hit once NTES manages to clear some near-term overhead resistance at $58.20 with high volume.
Traders should now look for long-biased trades in NTES as long as it's trending above today's low of $54.44, and then once it sustains a move or close above $58.20 with volume that's near or above 812,077 shares. If that breakout triggers soon, then NTES will have a great chance of re-testing or possibly taking out its next major overhead resistance levels at $61.90 to $64.08.
designs, develops, markets, installs, hosts and supports health care information technology, health care devices and content solutions for healthcare organizations and consumers. This stock is trading up 4% at $76.48 in recent trading.
Today's Volume: 2.1 million
Average Volume: 1.3 million
Volume % Change: 115%
From a technical perspective, CERN is ripping higher here with above-average volume right above its 200 and 50-day moving averages. This move is quickly pushing CERN within range of triggering a major breakout trade. That trade will hit once CERN manages to clear some near-term overhead resistance levels at $76.17 to $78.53 with high volume. At last check, CERN has hit an intraday high of $78.08 and volume is tracking in well above its three-month average action of 1.3 million shares.
Traders should now look for long-biased trades in CERN as long as it's trending above $76.17, and then once it sustains a move or close above $78.53 with volume that's near or above 1.3 million shares. If that breakout triggers soon, then CERN will have a great chance to re-test or possibly take out its next significant overhead resistance levels at $83.97 to $88.32.
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.