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
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is a global information technology company that offers its customers a range of solutions and services delivered directly by Dell and through other distribution channels. This stock is trading up 3.8% at $12.44 in recent trading.
Today's Volume: 23.7 million
Average Volume: 18.1 million
Volume % Change: 188%
Shares of DELL are ripping higher today after the company said it will offer shareholders a dividend of 32 cents a share per year, or 8 cents a quarter.
, DELL is gapping up sharply here on above average volume. This move is quickly pushing DELL within range of triggering a major
. That trade will hit once DELL takes out some near-term overhead resistance at $12.41, and then once it takes out more resistance at $12.84 and its recent gap-down day high of $13.10 with volume.
Traders should now look for long-biased trades once DELL sustains a move or close above those levels with volume that's near or above 18.1 million shares. If we get that action soon, then DELL could fill some of that gap back towards $15 in the near future.
As of the most recently reported quarter, Dell is one of
and also shows up in
( LNCR) is a provider of oxygen, respiratory and other chronic therapy services to patients in the home. This stock is trading up 2.8% at $24.59 in recent trading.
Today's Volume: 936,000
Average Volume: 772,969
Volume % Change: 132%
From a technical perspective, LNCR is ripping higher here back above both its 200-day
at $23.95 and its 50-day moving average at $24.16 with above-average volume. From a technical standpoint, it is often consider bullish when a stock moves and closes above those key moving averages with high volume.
Traders should now look for long-biased trades if LNCR can manage to trigger a near-term breakout trade. That trade will hit once LNCR takes out some near-term
at $25.41 to $25.53 with high volume. Look for a sustained move or close above those levels with volume that's near or above 772,969 shares. If we get that action soon, then LNCR could easily hit $26.50 to $27.38 very quickly.
( TUDO) is an online video company in China. Its Website Tudou.com provides a robust online platform for Chinese Internet users to upload, watch and share videos through the Internet. This stock is trading up 3.55% at $37.63 in recent trading.
Today's Volume: 174,000
Average Volume: 271,889
Volume % Change: 137%
From a technical perspective, TUDO is ripping higher here on decent volume. This move has started to push TUDO into
, since the stock has pushed above some past overhead resistance at $37.24.
Traders should continue to look for long-biased trades as long as TUDO can sustain a trend above $37.24 with strong upside volume flows. I would consider any upside volume day above $37.24 that registers near or close to 271,889 shares as bullish. If we continue to see that action, look for TUDO to hit $40 to $42.50 in the near future, or possibly even its
is a global biopharmaceutical company engaged in the discovery, development and commercialization of therapies designed to treat cancer and immune-inflammatory related diseases. This stock is trading up 1.6% at $64.07 in recent trading.
Today's Volume: 2.8 million
Average Volume: 3.1 million
Volume % Change: 62%
Shares of CELG are moving modestly higher today after the company said it has approved the repurchase of up to $2.5 billion in stock. The authorization is open-ended, the company said.
, CELG is bouncing modestly here with decent volume off of some near-term support at $62.76. That support at $62.76 could be marking a near-term bottom for this stock, since it's very close to some longer-term support at $60. Shares of CELG are also bouncing here off of oversold levels, since its current relative strength index reading is 30.35.
Traders should now look for long-biased trades once CELG triggers a near-term breakout trade. That trade will hit once CELG takes out some near-term overhead resistance at $65.50 to $66.18 with
. Watch for a sustained move or close above those levels with volume that's near or above 3.1 million shares. If we get that action soon, then look for CELG to easily re-test its 200-day moving average of $68.87, or possibly trade into the low-$70s.
Celgene also shows up on a recent list of
provides mobile Internet through wireless fidelity networks globally. The company's solution includes software for Wi-Fi enabled devices, such as smartphones, laptops and tablet computers, and its back-end system infrastructure that detects and enables one-click access to its global Wi-Fi network. This stock is trading up 5% at $11.21 in recent trading.
Today's Volume: 103,000
Average Volume: 134,788
Volume % Change: 59%
From a technical perspective, WIFI is displaying follow-through strength here, after the stock saw a strong volume move on Tuesday back above its 50-day
of $10.36. This relative strength today is coming with decent volume, and it's also pushing WIFI within range of a breakout trade. That trade will hit once WIFI manages to take out some near-term overhead
at $11.46 and $11.62 with high-volume.
Traders should now look for long-biased trades once WIFI sustains a move or close above $11.46 to $11.62 with volume that's near or above 134,788 shares. If we get that action today or soon, then look for WIFI to rip higher back towards its March high of $13.25 or possibly much higher.
designs, manufactures and markets a system of clear aligner therapy, intra-oral scanners and computer-aided design and computer-aided manufacturing digital services used in dentistry, orthodontics, and dental records storage. This stock is trading up 2% at $31.14 in recent trading.
Today's Volume: 688,000
Average Volume: 826,017
Volume % Change: 50%.
, ALGN is bouncing here right off its 50-day moving average of $30.12 with decent volume. This move is quickly pushing ALGN within range of triggering a near-term breakout trade. That trade will hit once ALGN takes out some near-term overhead resistance at $31.88 to $32.90 with high volume.
Traders should now look for long-biased trades once ALGN sustains a move or close above $31.88 to $32.90 with volume that's near or above 826,017 shares. If we get that move soon, then look for ALGN to re-test and possibly take out its April high of $34.29.
On the flipside, I would avoid any long trades or look for short-biased trades if ALGN moves back below its 50-day
of $30.12, and then moves below some near-term support at $29.87 with heavy volume.
is a provider of high-speed fixed and mobile broadband services, advanced satellite and wireless networks and secure networking systems, products and services. This stock is trading up 3.2% at $36.97 in recent trading.
Today's Volume: 414,000
Average Volume: 282,817
Volume % Change: 127%.
From a technical perspective, VSAT is bouncing sharply here with high volume very close to some near-term
at $34.84. This bounce is also coming off of extremely oversold conditions, since the current relative strength index reading for VSAT is 26.36. In fact, the RSI for VSAT has been well below 30 for the past week. Oversold can always get more oversold, but it can also produce strong upside bounces once volume comes in and the sellers are done selling.
Traders should now look for long-biased trades if VSAT can manage to trigger a near-term
. That trade will hit once VSAT takes out yesterday's high of $37.36 and then some more overhead resistance at $39 with high volume. Look for a sustained move or close above those levels with volume that's near or above 282,817 shares. If we get that action soon, then VSAT has a great chance of tagging $41.50 to $42 or higher.
On the flipside, I would avoid this stock or look for short-biased trades if it takes out that near-term support at $34.84 with heavy volume.
Texas Capital Bancshares
Texas Capital Bancshares
provides commercial banking services to its customers in Texas and concentrates on middle market commercial businesses and successful professionals and entrepreneurs. This stock is trading up 1.8% at $39.55 in recent trading.
Today's Volume: 304,000
Average Volume: 367,680
Volume % Change: 50%.
From a technical perspective, TCBI is moving modestly higher here with decent volume. This stock has been solidly locked in an uptrend for the last six months, with shares soaring from a low of $29.34 to a recent high of $40.13. That move shows a pattern on the chart for TCBI of higher lows and higher highs, which is bullish technical price action. Now this stock is quickly approaching a near-term breakout trade. That trade will hit once TCBI takes out its
of $40.13 with high
Traders should look for long-biased trades if TCBI can sustain a move or close above $40.13 with volume that's near or above 367,680 shares. If we get that action soon, then I would look for TCBI to continue its uptrend towards $45 in the near future.
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.