3 Stocks Rising on Unusual 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.

>>5 Rocket Stocks to Buy for May Gains

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 Poised for Breakouts

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

Teekay LNG Partners (TGP) provides marine transportation services for liquefied natural gas, liquefied petroleum gas and crude oil worldwide. This stock closed up 1.3% at $42.89 in Monday's trading session.

Monday's Volume: 428,402
Three-Month Average Volume: 159,011
Volume % Change: 174%

From a technical perspective, TGP bounced modestly higher here right above some near-term support levels at $41.94 to its 50-day moving average of $40.99 with above-average volume. This bounce higher on Monday is starting to push shares of TGP within range of triggering a big breakout trade. That trade will hit if TGP manages to take out some near-term overhead resistance levels at $43 to $43.63 and then above its 52-week high at $45.42 with high volume.

Traders should now look for long-biased trades in TGP as long as it's trending above support at $41.94 or above its 50-day at $40.99 and then once it sustains a move or close above those breakout levels with volume that hits near or above 159,011 shares. If that breakout triggers soon, then TGP will set up to enter new 52-week-high territory above $45.42, which is bullish technical price action. Some possible upside targets off that breakout are $50 to $55.

Trinity Biotech (TRIB) acquires, develops, manufactures and markets medical diagnostic products for the clinical laboratory and point-of-care segments of the diagnostic market. This stock closed up 7.9% at $24.78 in Monday's trading session.

Monday's Volume: 302,000
Three-Month Average Volume: 85,813
Volume % Change: 250%

From a technical perspective, TRIB gapped up sharply higher here back above its 200-day moving average of $23.51 with strong upside volume. This move is quickly pushing shares of TRIB within range of triggering a near-term breakout trade. That trade will hit if TRIB manages to take out its 50-day moving average of $25.39 to some more near-term overhead resistance at $25.52 with high volume.

Traders should now look for long-biased trades in TRIB as long as it's trending above Monday's low of $24.51 or above $24 and then once it sustains a move or close above those breakout levels with volume that's near or above 85,813 shares. If that breakout kicks off soon, then TRIB will set up to re-test or possibly take out its next major overhead resistance levels at $27.50 to its 52-week high at $28.06. Any high-volume move above $28.06 will then give TRIB a chance to tag $30.

Mattress Firm (MFRM), through its subsidiaries, operates as a specialty retailer of mattresses and related products and accessories in the U.S. This stock closed up 1.5% at $45.64 in Monday's trading session.

Monday's Volume: 431,000
Three-Month Average Volume: 224,837
Volume % Change: 85%

From a technical perspective, MFRM bounce modestly higher here right above some near-term support at $42 and back above its 50-day moving average of $45.53 with above-average volume. This move is starting to push shares of MFRM within range of triggering a major breakout trade. That trade will hit if MFRM manages to take out some near-term overhead resistance levels at $48 to $49.54 and then its all-time high at $49.81 with high volume.

Traders should now look for long-biased trades in MFRM as long as it's trending above Monday's low of $43.22 or above more support at $42 and then once it sustains a move or close above those breakout levels with volume that's near or above 224,837 shares. If that breakout starts soon, then MFRM will set up to enter new all-time-high territory above $49.81, which is bullish technical price action. Some possible upside targets off that breakout are $60 to $65.

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.

RELATED LINKS:

 

 

 

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned. Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

More from Investing

Why These 5 Big Industrial Stocks Are Being Rocked By Trade War Fears

Why These 5 Big Industrial Stocks Are Being Rocked By Trade War Fears

Live at 1 p.m. ET: Our Columnists Take Your Questions on What Stocks to Buy Here

Live at 1 p.m. ET: Our Columnists Take Your Questions on What Stocks to Buy Here

3 Investing Tips From Jim Cramer That Will Help You Survive a Market Correction

3 Investing Tips From Jim Cramer That Will Help You Survive a Market Correction

3 Fierce Chinese Tech Stocks to Gamble on Right Now

3 Fierce Chinese Tech Stocks to Gamble on Right Now

Why Retirees Should Stick With Stocks

Why Retirees Should Stick With Stocks