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.

>>Beat the S&P With 5 Stocks Everyone Else Hates

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 Set to Soar on Bullish Earnings

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

KEYW Holding (KEYW) provides mission-critical cybersecurity, cyber superiority and geospatial intelligence solutions to the U.S. Government defense, intelligence, and national security agencies, and commercial enterprises. This stock closed up 9.7% at $13.29 in Wednesday's trading session.

Wednesday's Volume: 1.37 million
Three-Month Average Volume: 517,460
Volume % Change: 164%

From a technical perspective, KEYW exploded higher here right above some near-term support levels at $12 to $11.93 with strong upside volume flows. This stock has been uptrending strong for the last month and change, with shares moving higher from its low of $9.71 to its recent high of $13.72. During that move, shares of KEYW have been making mostly higher lows and higher highs, which is bullish technical price action. This spike higher on Wednesday is now quickly pushing shares of KEYW within range of triggering a near-term breakout trade. That trade will hit if KEYW manages to take out Wednesday's intraday high of $13.33 to some more key overhead resistance levels at $13.72 to its 200-day moving average at $14.23 with high volume.

Traders should now look for long-biased trades in KEYW as long as it's trending above Wednesday's intraday low of $12.34 or above more support near $12 and then once it sustains a move or close above those breakout levels with volume that hits near or above 517,460 shares. If that breakout materializes soon, then KEYW will set up to re-test or possibly take out its next major overhead resistance levels at $15.20 to $16, or even $18.

BCE (BCE), a communications company, provides broadband communication services to residential and business customers in Canada. This stock closed up 1.1% at $45.49 in Wednesday's trading session.

Wednesday's Volume: 1.75 million
Three-Month Average Volume: 541,184
Volume % Change: 189%

From a technical perspective, BCE spiked modestly higher here right above some near-term support at $44.51 and back above its 50-day moving average of $45.29 with above-average volume. This spike higher on Wednesday is starting to push shares of BCE within range of triggering a major breakout trade. That trade will hit if BCE manages to take out some key near-term overhead resistance levels at $45.73 to its 52-week high at $46.70 with high volume.

Traders should now look for long-biased trades in BCE as long as it's trending above Wednesday's intraday low of $44.90 or above more key support at $44.51 and then once it sustains a move or close above those breakout levels with volume that's near or above 541,184 shares. If that breakout hits soon, then BCE will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $50 to $55, or even $60.

Emeritus (ESC) operates senior living communities in the U.S. This stock closed up 2.2% at $33.10 in Wednesday's trading session.

Wednesday's Volume: 1.26 million
Three-Month Average Volume: 421,819
Volume % Change: 169%

From a technical perspective, ESC spiked notably higher here and broke out into new 52-week-high territory with above-average volume. This breakout has now pushed shares of ESC above the upper-end of its recent sideways trading chart pattern, which saw the stock trend between $27.88 on the downside and $32.57 on the upside. Market players should now look for a continuation move to the upside in the short-term if ESC manages to take out its new 52-week high at $33.31 with strong upside volume flows.

Traders should now look for long-biased trades in ESC as long as it's trending above some key near-term support at $32 or above its 50-day moving average of $31.24 and then once it sustains a move or close above $33.31 with volume that's near or above 421,819 shares. If that move kicks off soon, then ESC will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $$40 to $45.

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

Finding Stocks Right for You: Cramer's 'Mad Money' Recap (Friday 8/25/18)

Finding Stocks Right for You: Cramer's 'Mad Money' Recap (Friday 8/25/18)

Bitcoin Today: Prices Continue to Slump Heading Into Weekend

Bitcoin Today: Prices Continue to Slump Heading Into Weekend

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists