4 Stocks Trading With Big Volume

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.

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Major moves in volume can signal unusual activity, such as insider buying or selling -- 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 several stocks rising on unusual volume today.

Abiomed

Abiomed ( ABMD) is a provider of mechanical circulatory support devices and it offers a continuum of care in heart recovery to heart failure patients. This stock is trading up 5.8% at $14.41 in recent trading.

Today's Volume: 2.06 million

Average Volume: 679,236

Volume % Change: 412%

From a technical perspective, ABMD is trending higher here with above-average volume. This move is coming following a large gap down that took ABMD from $20 to $13.12 with heavy volume. That plunge has now pushed ABMD into oversold territory, since its relative strength index (RSI) reading is now 26. Oversold can always get more oversold, but ABMD could continue to spike higher if it takes out its gap down day high.

Traders should now look for long-biased trades in ABMD once it manages to sustain a move or close above its gap down day high of $15.90 with volume that hits near or above 679,236 shares. If that breakout triggers soon, then look for ABMD will have a great chance to re-fill some or its entire gap down zone that started near $20.

Focus Media

Focus Media ( FMCN) is engaged in selling out-of home television advertising time slots on its network of flat-panel television advertising displays located in high traffic areas such as commercial locations and in-store network. This stock is trading up 3.7% at $24.75 in recent trading.

Today's Volume: 4.45 million

Average Volume: 1.80 million

Volume % Change: 401%

From a technical perspective, FMCN is bouncing sharply to the upside here right off its 50-day moving average of $23.95 with monster volume. This move has started to push FMCN into breakout territory, since the stock has taken out some near-term overhead resistance at $24.67. This move is quickly pushing FMCN within range of triggering another big breakout trade. That trade will hit once FMCN manages to take out some past overhead resistance at $26.33 with high volume.

Traders should now look for long-biased trades in FMCN as long as it's trending above its 50-day at $23.95, and then once it sustains a move or close above $26.33 with volume that hits near or above 1.80 million shares. If that breakout triggers soon, then FMCN will set up to re-test or possibly take out its next major overhead resistance levels at $28 to $29.65.

TransGlobe Energy

TransGlobe Energy ( TGA)is mainly engaged in the exploration for, and the development and production of, oil and gas in Egypt and Yemen. This stock is trading up 9% at $12.01 in recent trading.

Today's Volume: 240,000

Average Volume: 94,159

Volume % Change: 337%

From a technical perspective, TGA is gapping sharply higher here right through its 50-day moving average of $11.12 with above-average volume. This move has started to push TGA into breakout territory, since the stock is flirting with some near-term overhead resistance levels at $11.75 to $12.14.

Traders should now look for long-biased trades in TGA as long as it's trending above $11.75 to $12.14 with strong upside volume flows. I would consider any upside volume day that registers near or above 94,159 shares as bullish. If TGA can maintain that trend, especially above $12.14, then this stock will set up to re-test or possibly take out its next major overhead resistance level at $14.46.

Boston Beer

Boston Beer ( SAM) is engaged in the business of selling low alcohol beverages throughout the U.S. The company sells its products to a network of approximately 400 wholesale distributors. This stock is trading up 7.2% at $115.79 in recent trading.

Today's Volume: 291,000

Average Volume: 99,656

Volume % Change: 375%

From a technical perspective, SAM is ripping higher here with above-average volume. This move has started to push SAM into major breakout territory, since the stock has moved above some key overhead resistance levels at $111.82 to $113.71 and above more resistance at $115.86.

Traders should now look for long-biased trades in SAM as long as it's trending above $113.71 to $115.86 with strong upside volume flows. I would consider any upside volume day that registers near or above 99,656 shares as bullish. If SAM can maintain that trend, especially its trend above $115.86, and then this stock has a great chance to make a run at its 52-week high of $128.07.

To see these stocks in action, check out the Most-Active Stocks portfolio on Stockpickr.

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At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to
TheStreet . Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily , and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

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