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.>>5 Stocks Setting Up to Break Out 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. >>5 Stocks Under $10 Set to Soar With that in mind, let's take a look at several stocks rising on unusual volume today.
Three-Month Average Volume: 5.45 million
Volume % Change: 191% >>5 Stocks With Big Insider Buying From a technical perspective, LLY trended up modestly here right above some near-term support at $53 with heavy upside volume. This stock has been uptrending strong for the last month and change, with shares moving higher from its low of $46.68 to its recent high of $54.45. During that uptrend, shares of LLY have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of LLY within range of triggering a near-term breakout trade. That trade will hit if LLY manages to take out some near-term overhead resistance at $54.45 with high volume. Traders should now look for long-biased trades in LLY as long as it's trending above $53 or above its 200-day at $52.08 and then once it sustains a move or close above $54.45 with volume that hits near or above 5.45 million shares. If that breakout hits soon, then LLY will set up to re-test or possibly take out its next major overhead resistance levels at $57.10 to $57.90.
Three-Month Average Volume: 1.11 million
Volume % Change: 248% Shares of NKTR soared higher on Friday after its quarterly results topped Wall Street expectations. >>5 Surprise Stocks the Pros Love Right Now From a technical perspective, NKTR ripped sharply higher here right off its 50-day moving average of $11.21 with strong upside volume flows. This move is quickly pushing shares of NKTR within range of triggering a near-term breakout trade. That trade will hit if NKTR manages to take out some near-term overhead resistance levels at $12.91 to its 52-week high at $12.95 with high volume. Traders should now look for long-biased trades in NKTR as long as it's trending above its 50-day at $11.21 and then once it sustains a move or close above those breakout levels with volume that's near or above 1.11 million shares. If that breakout hits soon, then NKTR will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $15 to $17. To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr. -- Written by Roberto Pedone in Delafield, Wis.
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