3 Biotech Stocks Spiking on Big Volume

Delafield, Wis. ( 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.

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With that in mind, let's take a look at several stocks rising on unusual volume today.


Endocyte ( ECYT) develops targeted therapies for the treatment of cancer and inflammatory diseases. The company uses its proprietary technology to create novel small molecule drug conjugates and companion imaging diagnostics. This stock is trading up 6.9% at $15.85 in recent trading.

Today's Volume: 463,000
Average Volume: 265,322
Volume % Change: 179%

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From a technical perspective, ECYT is ripping higher here and breaking out above some past overhead resistance at $15.36 with above-average volume. This stock has been uptrending strong for the last month, with shares soaring higher from its low of $11.80 to its intraday high of $16.23. During that uptrend, shares of ECYT have been consistently making higher lows and higher highs, which is bullish technical price action.

Traders should now look for long-biased trades in ECYT as long as it's trending above today's low of $14.85 or above that breakout level of $15.36 and then once it sustains a move or close above today's intraday high and its new all-time high of $16.23 with volume that hits near or above 265,322 shares. If we get that move soon, then ECYT will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that move are $20 to $23.

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