5 Stocks Moving 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.

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.

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

Criteo SA

Criteo SA (CRTO) , together with its subsidiaries, operates as a technology company that provides Internet display advertising services in France and internationally. This stock closed up 6.1% at $31.75 in Monday's trading session.

Monday's Volume: 784,000
Three-Month Average Volume: 469,783
Volume % Change: 85%

From a technical perspective, CRTO ripped sharply higher here right off some near-term support at $30 with above-average volume. This strong spike to the upside on Monday is quickly pushing shares of CRTO within range of triggering a major breakout trade. That trade will hit if CRTO manages to take out its 50-day moving average of $32.31 to some more key overhead resistance levels at $33.44 to $33.88 with high volume.

Traders should now look for long-biased trades in CRTO as long as it's trending above support at $30 or above more near-term support at $28.31 and then once it sustains a move or close above those breakout levels with volume that hits near or above 469,783 shares. If that breakout starts soon, then CRTO will set up to re-test or possibly take out its next major overhead resistance levels at $37.50 to $39.30, or even $40.

WebMD Health Corp.

WebMD Health Corp. (WBMD) provides health information services to consumers, physicians and other healthcare professionals, employers, and health plans through its public and private online portals, mobile platforms, and health-focused publications in the U.S. This stock closed up 3.6% at $49.26 in Monday's trading session.

Monday's Volume: 938,000
Three-Month Average Volume: 561,522
Volume % Change: 54%

From a technical perspective, WBMD ripped sharply higher here back above its 50-day moving average of $48.92 with above-average volume. This strong move through WBMD's 50-day on Monday is quickly pushing this stock within range of triggering a near-term breakout trade. That trade will hit if WBMD manages to take out some key near-term overhead resistance levels at $50 to $50.96 with high volume.

Traders should now look for long-biased trades in WBMD as long as it's trending above Monday's intraday low of $47.87 or above more near-term support at $46.77 and then once it sustains a move or close above those breakout levels with volume that's near or above 561,522 shares. If that breakout triggers soon, then WBMD will set up to re-test or possibly take out its next major overhead resistance levels at $52.27 to its 52-week high at $53.30. Any high-volume move above those levels will then give WBMD a chance to challenge $55 to $60.

Mavenir Systems

Mavenir Systems (MVNR) provides software-based telecommunications networking solutions. This stock closed up 6.7% at $11.84 in Monday's trading session.

Monday's Volume: 329,000
Three-Month Average Volume: 132,281
Volume % Change: 163%

From a technical perspective, MVNR ripped sharply higher here right off some near-term support at $11.50 with strong upside volume flows. This stock has been uptrending over the last few weeks, with shares moving higher from its low of $10.35 to its intraday high of $12.08. During that move, shares of MVNR have been making mostly higher lows and higher highs, which is bullish technical price action. Market players should now look for a continuation move to the upside in the short-term if MVNR manages to take out Monday's intraday high of $12.08 to some more near-term overhead resistance at $12.50 with high volume.

Traders should now look for long-biased trades in MVNR as long as it's trending above support at $11.50 or at $11 and then once it sustains a move or close above $12.08 to $12.50 with volume that's near or above 132,281 shares. If that move gets underway soon, then MVNR will set up to re-test or possibly take out its next major overhead resistance levels at $13.25 to its 50-day moving average at $13.40, or even $14 to $14.50.

Durata Therapeutics

Durata Therapeutics (DRTX) , a pharmaceutical company, focuses on the development and commercialization of novel therapeutics for patients with infectious diseases and acute illnesses. This stock closed up 5.5% at $15.99 in Monday's trading session.

Monday's Volume: 572,000
Three-Month Average Volume: 406,956
Volume % Change: 55%

From a technical perspective, DRTX ripped sharply higher here back above its 50-day moving average of $15.53 with above-average volume. This stock has been uptrending a bit for the last few weeks, with shares moving higher from its low of $13.35 to its intraday high of $16.13. During that uptrend, shares of DRTX have been consistently making higher lows and higher highs, which is bullish technical price action. This spike to the upside in Monday is now quickly pushing shares of DRTX within range of triggering a near-term breakout trade. That trade will hit if DRTX manages to take out Monday's intraday high of $16.13 to some more near-term overhead resistance at $16.24 with high volume.

Traders should now look for long-biased trades in DRTX as long as it's trending above Monday's intraday low of $15.28 or above $15 to $14.50 and then once it sustains a move or close above those breakout levels with volume that's near or above 406,956 shares. If that breakout kicks off soon, then DRTX will set up to re-test or possibly take out its next major overhead resistance levels at $17.24 to its all-time high at $18.17. Any high-volume move above $18.17 will then give DRTX a chance to tag $20 to $22.

Celladon

Celladon (CLDN) , a clinical-stage biotechnology company, focuses on developing treatments for heart failure, diabetes, and neurodegenerative diseases. This stock closed up 11.3% at $11.72 in Monday's trading session.

Monday's Volume: 409,000
Three-Month Average Volume: 165,475
Volume % Change: 116%

From a technical perspective, CLDN exploded sharply higher here right above some near-term support at $10 with strong upside volume flows. This stock has been downtrending badly for the last few weeks, with shares falling from its high of $14.75 to its recent low of $9.20. During that move, shares of CLDN have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of CLDN have now started to rebound higher off that $9.20 low with bullish upside volume flows. Market players should now look for a continuation move to the upside in the short-term if CLDN manages to take out Monday's intraday high of $11.86 to around $12 with high volume.

Traders should now look for long-biased trades in CLDN as long as it's trending above Monday's intraday low of $10.46 or above more near-term support at $10 and then once it sustains a move or close above $11.86 with volume that's near or above 165,475 shares. If that moves develops soon, then CLDN will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $12.78 to $13, or even $13.84 to $14.75.

To see more stocks rising on unusual volume, check out the Stocks Rising On Unusual Volume portfolio on Stockpickr.

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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.

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.

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