3 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.

>>5 Rocket Stocks to Buy for August 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 Ready for Breakouts

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

Lincoln Electric (LECO), through its subsidiaries, engages in the design, manufacture and sale of welding, cutting and brazing products worldwide. This stock closed up 4.9% to $70.05 in Monday's trading session.

Monday's Volume: 1.08 million
Three-Month Average Volume: 369,962
Volume % Change: 238%

From a technical perspective, LECO gapped up sharply higher here back above both its 50-day moving average at $67.68 and its 200-day moving average of $69.40 with strong upside volume flows. This powerful gap higher on Monday is quickly pushing shares of LECO within range of triggering a big breakout trade. That trade will hit if LECO manages to take out some key near-term overhead resistance levels at $70.81 to $71.23 with high volume.

Traders should now look for long-biased trades in LECO as long as it's trending above Monday's intraday low of $68.46 or above its 50-day at $67.68 and then once it sustains a move or close above those breakout levels with volume that hits near or above 369,962 shares. If that breakout begins soon, then LECO will set up to re-test or possibly take out its next major overhead resistance levels at $73 to its 52-week high at $76.26.

Acacia Research (ACTG), through its subsidiaries, acquires, develops, licenses and enforces patented technologies in the U.S. This stock closed up 4.2% to $18.24 in Monday's trading session.

Monday's Volume: 1.84 million
Three-Month Average Volume: 436,819
Volume % Change: 347%

From a technical perspective, ACTG ripped higher here with heavy upside volume flows. This stock recently gapped up sharply higher from around $15 to $18.50 with strong volume. Shares of ACTG continued to trend higher on Monday following that gap and it's now quickly approaching a big breakout trade. That trade will hit if ACTG manages to take out Monday's intraday high of $18.56 to some more near-term overhead resistance at $18.74 with high volume.

Traders should now look for long-biased trades in ACTG as long as it's trending above Monday's intraday low of $17.50 or above $17 and then once it sustains a move or close above those breakout levels with volume that hits near or above 436,819 shares. If that breakout hits soon, then ACTG will set up to re-test or possibly take out its next major overhead resistance levels at $21 to $22, or even its 52-week high at $23.87.

Tuniu (TOUR) operates as an online leisure travel company in the People's Republic of China. This stock closed up 6.6% to $19.95 in Monday's trading session.

Monday's Volume: 1.38 million
Three-Month Average Volume: 588,068
Volume % Change: 192%

From a technical perspective, TOUR ripped sharply higher here and broke out into new all-time-high territory above $19.80 with above-average volume. This powerful breakout pushed shares of TOUR above some key near-term overhead resistance levels at $19.55 to $19.72 and above its previous all-time high at $19.80. Market players should now look for a continuation move to the upside in the short-term if TOUR manages to take out its new all-time high at $21 with high volume.

Traders should now look for long-biased trades in TOUR as long as it's trending above Monday's intraday low of $18.60 and then once it sustains a move or close above $21 with volume that hits near or above 588,068 shares. If that move gets started soon, then TOUR will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that move are $24 to $25.

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

Trump's 'Space Force' Could Launch a $1 Trillion Industry, Morgan Stanley Says

Trump's 'Space Force' Could Launch a $1 Trillion Industry, Morgan Stanley Says

Abiomed Stock Should Rise Some 12% From Here, Piper Jaffray Analyst Says

Abiomed Stock Should Rise Some 12% From Here, Piper Jaffray Analyst Says

Video: Here Is Why Carvana Isn't Worried About Amazon

Video: Here Is Why Carvana Isn't Worried About Amazon

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat