4 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.

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.

IHS

IHS (IHS) provides critical information, insights and analytics. This stock closed up 0.71% to $126.87 in Wednesday's trading session.

Wednesday's Volume: 675,000
Three-Month Average Volume: 224,281
Volume % Change: 189%

From a technical perspective, IHS spiked modestly higher here right off its 200-day moving average of $125.53 with above-average volume. This stock has been downtrending badly for the last month, with shares falling sharply from its high of $143.92 to its intraday low of $124.84. During that downtrend, shares of IHS have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of IHS have now entered oversold territory, since its current relative strength index reading is 22.04. Market players should now look for a continuation move higher off oversold territory in the short-term if IHS manages to clear Wednesday's intraday high of $127.16 with high volume.

Traders should now look for long-biased trades in IHS as long as it's trending above Wednesday's intraday low of $124.84 and then once it sustains a move or close above $127.16 with volume that hits near or above 224,281 shares. If that move begins soon, then IHS will set up to re-test or possibly take out its next major overhead resistance levels at $131 to its 50-day moving average of $136.54.

Constellation Brands

Constellation Brands (STZ) , together with its subsidiaries, produces, imports and markets beer, wine and spirits in the U.S., Canada, Mexico, New Zealand, and Italy. This stock closed up 1.7% at $87.96 in Wednesday's trading session.

Wednesday's Volume: 1.28 million
Three-Month Average Volume: 1.05 million
Volume % Change: 50%

From a technical perspective, STZ jumped higher here right off its 50-day moving average of $86.39 with above-average volume. This trend to the upside on Wednesday is quickly pushing shares of STZ within range of triggering a big breakout trade. That trade will hit if STZ manages to clear some key near-term overhead resistance levels at $88.43 to $88.50 and then above $90 with high volume.

Traders should now look for long-biased trades in STZ as long as it's trending above Wednesday's intraday low of $86.10 or above more near-term support at $84.80 and then once it sustains a move or close above those breakout levels with volume that's near or above 1.05 million shares. If that breakout starts soon, then STZ will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $94.77.

Martin Marietta Materials

Martin Marietta Materials (MLM) , together with its subsidiaries, produces and sells aggregates for the construction industry. This stock closed up 1.7% at $132.25 in Wednesday's trading session.

Wednesday's Volume: 1.29 million
Three-Month Average Volume: 1.15 million
Volume % Change: 58%

From a technical perspective, MLM jumped higher here right above its 50-day moving average of $128.69 with above-average volume. This trend to the upside on Wednesday is quickly pushing shares of MLM within range of triggering a big breakout trade. That trade will hit if MLM manages to take out some key overhead resistance levels at $133.02 to $134.23 and then above its 52-week high of $136.36 with high volume.

Traders should now look for long-biased trades in MLM as long as it's trending above its 50-day at $128.69 and then once it sustains a move or close above those breakout levels with volume that's near or above 1.15 million shares. If that breakout gets underway soon, then MLM will set up to enter new 52-week-high territory above $136.36, which is bullish technical price action. Some possible upside targets off that breakout are $145 to $150.

Textura

Textura (TXTR) provides on-demand business collaboration software solutions to the commercial construction industry in the U.S. and Canada. This stock closed up 5.4% at $28.70 in Wednesday's trading session.

Wednesday's Volume: 411,000
Three-Month Average Volume: 286,502
Volume % Change: 75%

From a technical perspective, TXTR surged higher here right above its 200-day moving average of $26.21 and back above its 50-day moving average of $27.64 with above-average volume. This spike to the upside on Wednesday is starting to push shares of TXTR within range of triggering a big breakout trade. That trade will hit if TXTR manages to take out Wednesday's intraday high of $28.86 and then above more near-term overhead resistance levels at $30 to $30.53 with high volume.

Traders should now look for long-biased trades in TXTR as long as it's trending above some key near-term support at $26.70 or above its 200-day at $26.21 and then once it sustains a move or close above those breakout levels with volume that's near or above 286,502 shares. If that breakout triggers soon, then TXTR will set up to re-test or possibly take out its next major overhead resistance levels at $36.33 to $41.50.

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

GM's New Chevy Blazer Looks as Lame as the Stock Market Right Now

GM's New Chevy Blazer Looks as Lame as the Stock Market Right Now

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

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

ABIOMED Stock Should Rise Some 10% From Here, Piper Jaffray Analyst Says

ABIOMED Stock Should Rise Some 10% From Here, Piper Jaffray Analyst Says

What Internet Sales Tax Ruling? Amazon Still Headed to $1,850

What Internet Sales Tax Ruling? Amazon Still Headed to $1,850

Starbucks Stock Performance in 2018: -12%

Starbucks Stock Performance in 2018: -12%