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.
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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.
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Core-Mark Holding (CORE) , together with its subsidiaries, markets fresh and broad-line supply solutions to the convenience retail industry in North America. This stock closed up 1.3% to $51.06 in Wednesday's trading session.
Wednesday's Volume: 756,000
Three-Month Average Volume: 107,653
Volume % Change: 470%
From a technical perspective, CORE trended modestly higher here with monster upside volume flows. This move to the upside on Wednesday pushed shares of CORE into breakout territory, since this stock took out its former 52-week high at $50.44. Market players should now look for a continuation move to the upside in the short-term if CORE manages to clear its new 52-week high at $51.47 with high volume.
Traders should now look for long-biased trades in CORE as long as it's trending above some near-term support just below $49 and then once it sustains a move or close above $51.47 with volume that hits near or above 107,653 shares. If that move gets underway soon, then CORE will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $55 to $60.
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Mazor Robotics (MZOR) is engaged in the development, production, marketing, and servicing of medical devices for supporting surgical procedures in the fields of orthopedics and neurosurgery in the U.S., Western Europe, Eastern Europe, and Asia. This stock closed up 6.5% at $14.80 in Wednesday's trading session.
Wednesday's Volume: 172,000
Three-Month Average Volume: 64,709
Volume % Change: 165%
From a technical perspective, MZOR ripped sharply higher here with strong upside volume flows. This big spike to the upside on Wednesday pushed shares of MZOR into breakout territory, since this stock took out some near-term overhead resistance levels at $14.28 to its 50-day moving average of $14.58 with high volume. This move is now quickly pushing shares of MZOR within range of triggering another big breakout trade. That trade will hit if MZOR manages to clear Wednesday's intraday high of $14.87 to some more key overhead resistance levels at $15.23 to $15.73 with high volume.
Traders should now look for long-biased trades in MZOR as long as it's trending above Wednesday's intraday low of $14.02 or above more near-term support at $13.50 and then once it sustains a move or close above those breakout levels with volume that this near or above 64,709 shares. If that breakout hits soon, then MZOR will set up to re-test or possibly take out its next major overhead resistance levels at $17 to $18.50, or even its 200-day moving average at $18.83.
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Vipshop (VIPS) , through its subsidiaries, operates as an online discount retailer for various brands in the People's Republic of China. This stock closed up 2.5 % at $212.38 in Wednesday's trading session.
Wednesday's Volume: 1.34 million
Three-Month Average Volume: 993,327
Volume % Change: 50%
From a technical perspective, VIPS gapped notably higher here right above its 50-day moving average of $204.60 with above-average volume. This stock has been downtrending for the last month, with shares moving lower from its high of $229.49 to its recent low of $193.68. During that move, shares of VIPS have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of VIPS have now started to rebound sharply off that $193.68 low and its spiked back above its 50-day moving average. Market players should now look for a continuation move higher in the short-term if VIPS manages to take out Wednesday's intraday high of $212.65 with high volume.
Traders should now look for long-biased trades in VIPS as long as it's trending above its 50-day at $204.60 and then once it sustains a move or close above $212.65 with volume that's near or above 993,327 shares. If that move begins soon, then VIPS will set up to re-test or possibly take out its next major overhead resistance levels at $220 to its 52-week high at $229.49.
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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.