5 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.

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.

Emerge Energy Services

Emerge Energy Services EMES, acquires, owns, operates and develops a portfolio of energy service assets in the U.S. This stock closed up 3.6% to $124.39 in Friday's trading session.

Friday's Volume: 592,000
Three-Month Average Volume: 457,092
Volume % Change: 50%

From a technical perspective, EMES jumped notably higher here right off some near-term support at $120 with above-average volume. This move to the upside on Friday pushed shares of EMES into breakout territory, since the stock cleared its former 52-week high at $123.89 with high volume. Market players should now look for a continuation move to the upside on the short-term if EMES manages to take out its new 52-week high at $125.30 with high volume.

Traders should now look for long-biased trades in EMES as long as it's trending above some near-term support around $120 and then once it sustains a move or close above $125.30 with volume that hits near or above 457,092 shares. If that move gets underway soon, then EMES will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $130 to $135 a share, or $140 a share.

E-House Holdings

E-House Holdings (EJ) , through its subsidiaries, operates as a real estate services company primarily in the People's Republic of China. This stock closed up 4.5% to $12.20 in Friday's trading session.

Friday's Volume: 3.85 million
Three-Month Average Volume: 2.03 million
Volume % Change: 95%

From a technical perspective, EJ ripped higher here right off its 200-day moving average of $11.20 with above-average volume. This move pushed shares of EJ into breakout territory, since the stock took out some near-term overhead resistance at $12.14. Market players should now look for a continuation move to the upside in the short-term if EJ can manage to clear Friday's intraday high of $12.38 to some more past resistance at $13.02 with high volume.

Traders should now look for long-biased trades in EJ as long as it's trending above some near-term support at $11.14 or at $10.48 and then once it sustains a move or close above $12.38 to $13.02 with volume that hits near or above 2.03 million shares. If that move starts soon, then EJ will set up to re-test or possibly take out its next major overhead resistance levels at $15 to $17.

Tarena International

Tarena International (TEDU) , through its subsidiaries, primarily provides information technology professional education services through part-time and full-time classes in the People's Republic of China. This stock closed up 6.6% at $14.45 in Friday's trading session.

Friday's Volume: 1.21 million
Three-Month Average Volume: 605,511
Volume % Change: 125%

From a technical perspective, TEDU ripped sharply higher here right above some near-term support at $13.10 with above-average volume. This stock has been uptrending strong for the last three months and change, with shares moving higher from its low of $6.85 to its recent high of $15.63. During that uptrend, shares of TEDU have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of TEDU within range of triggering a major breakout trade. That trade will hit if TEDU manages to take out Friday's intraday high of $15.10 to its all-time high at $15.63 with high volume.

Traders should now look for long-biased trades in TEDU as long as it's trending above some near-term support levels at $13.10 or at its 50-day moving average of $12.66 and then once it sustains a move or close above those breakout levels with volume that hits near or above 605,511 shares. If that breakout hits soon, then TEDU will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $19 to $20.

King Digital Entertainment

King Digital Entertainment (KING) , an interactive entertainment company, develops and publishes casual games on digital platforms. This stock closed up 4.6% to $13.96 in Friday's trading session.

Friday's Volume: 3.54 million
Three-Month Average Volume: 1.71 million
Volume % Change: 225%

From a technical perspective, KING ripped sharply higher here right above its all-time low of $12.90 with strong upside volume flows. This stock recently gapped down sharply from over $18 to below $14 with heavy downside volume. Following that move, shares of KING went on to print its new all-time low at $12.90. Shares of KING are now starting to rebound off that $12.90 low and it's quickly approaching a major breakout trade. That trade will hit if KING manages to take out Friday's intraday high of $14.10 to some more key overhead resistance at $14.35 with high volume.

Traders should now look for long-biased trades in KING as long as it's trending above Friday's intraday low of $13.54 or above its all-time low of $12.90 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.71 million shares. If that breakout materializes soon, then KING will set up to re-fill some of its previous gap-down-day zone from this month that started just above $18.

Paycom Software

Paycom Software (PAYC) provides a cloud-based human capital management software solution delivered as software-as-a-service in the U.S. This stock closed up 5.5% at $17.45 in Friday's trading session.

Friday's Volume: 451,000
Three-Month Average Volume: 107,069
Volume % Change: 225%

From a technical perspective, PAYC ripped higher here and broke out above some near-term overhead resistance at $17.08 with above-average volume. This strong move to the upside on Friday is quickly pushing shares of PAYC within range of triggering a major breakout trade. That trade will hit if PAYC manages to clear Friday's intraday high of $17.69 to its all-time high at $17.92 with high volume.

Traders should now look for long-biased trades in PAYC as long as it's trending above Friday's intraday low of $16.37 or above more near-term support around $15.50 and then once it sustains a move or close above those breakout levels with volume that this near or above 107,069 shares. If that breakout begins soon, then PAYC will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $20 to $25.

-- Written by Roberto Pedone in Delafield, Wis.

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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.

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