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
, a packaged food company, specializes in processing, marketing and distributing snack products and culinary, in-shell and ingredient nuts. This stock is trading up 5% at $20.78 in recent trading.
Today's Volume: 379,000
Average Volume: 343,522
Volume % Change: 101%
From a technical perspective, DMND is gapping up sharply here with above-average volume. This move is quickly pushing DMND within range of triggering a major breakout trade. That trade will hit once DMND takes out some overhead resistance levels at $20.87 to $21.12 with high volume.
Traders should now look for long-biased traders in DMND as long as is trending above $19.72 and then once it sustains a move or close over $20.87 to $21.12 with volume that's near or above 343,522 shares. If that breakout triggers soon, then DMND will have a great chance of re-testing or possibly taking out its 200-day moving average of $23.48.
On the flip side, I would avoid DMND or look for short-biased trades if it fails to trigger that breakout, and then drops below some major near-term support at $18.51 with heavy volume.
is a non-refining operator of convenience store in Texas and a non-refining motor fuel distributor. This stock is trading up 1.6% at $39.24 in recent trading.
Today's Volume: 217,000
Average Volume: 275,705
Volume % Change: 50%
From a technical perspective, SUSS is bouncing modestly here right off some near-term support at $38 with decent volume. This move is quickly pushing SUSS within range of triggering a major breakout trade. That trade will hit once SUSS clears some near-term overhead resistance at $39.56 with high volume. At last check, SUSS has hit an intraday high of $39.77 and volume is just a bit below its three-month average volume of 275,000 shares.
Traders should now look for long-biased trades in SUSS as long as it's trending above its 50-day at $36.61, and then once it sustains a move or close above $39.56 with volume that's near or above 275,705 shares. If SUSS can trigger that breakout soon, then this stock has a great chance of trending up to $45 in the near future.
is a biopharmaceutical company focused on acquiring, developing and commercializing anti-cancer agents in the U.S., Europe and additional international markets. This stock is trading up 2.6% at $21.15 in recent trading.
Today's Volume: 52,000
Average Volume: 74,313
Volume % Change: 50%
From a technical perspective, CLVS is bouncing modestly here right off its 50-day moving average of $18.32 with decent volume. This move is quickly pushing CLVS within range of a near-term breakout trade. That trade will hit once CLVS takes out some near-term overhead resistance at $21.40 with high volume.
Traders should now look for long-biased trades in CLVS as long as its trending above its 50-day, and then once it sustains a move or close above $21.40 with volume that's near or above 74,313 shares. If that breakout triggers soon, then CLVS will have a great chance of re-testing or possibly taking out its next major overhead resistance level at $23.42.
owns and operates a network of agricultural and construction equipment stores in the U.S. and Europe. This stock is trading up 3.2% at $20.96 in recent trading.
Today's Volume: 1 million
Average Volume: 643,470
Volume % Change: 181%
Shares of TITN are moving notably higher today after Standpoint Research initiated coverage on the stock with a buy rating and $28 price target.
From a technical perspective, TITN is moving higher here with above-average volume. This stock has been hammered by the sellers during the last two months, with shares falling from $32.65 to its recent low of $19.07. During that move, shares of TITN have consistently made lower highs and lower lows, which is bearish technical price action. That said, TITN has now pushed into oversold territory, since its current relative strength index rating is around 30.
Traders should now look for long-biased trades in TITN as long as it's trending above its recent gap down day high of $21.71 with strong upside volume flows. I would consider any upside volume day that registers near or above 643,470 shares.
On the flip side, I would avoid TITN or look for short-biased trades if it fails to get into that gap, and then drops back below its recent low of $19.07 with heavy volume.
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.