4 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.

ProShares UltraShort Nasdaq Biotech

ProShares UltraShort Nasdaq Biotech (BIS) seeks daily investment results, before fees and expenses, that correspond to twice the daily performance of the Nasdaq Biotechnology Index. This stock closed up 4% to $13.50 in Monday's trading session.

Monday's Volume: 1.07 million
Three-Month Average Volume: 482,072
Volume % Change: 145%

From a technical perspective, BIS ripped higher here right off its 50-day moving average of $12.70 with strong upside volume flows. This move pushed shares of BIS into breakout territory, since it took out some near-term overhead resistance levels at $12.82 to $13.10. Market players should now look for a continuation move to the upside in the short-term if BIS manages to clear Monday's intraday high of $13.63 with high volume.

Traders should now look for long-biased trades in BIS as long as it's trending above its 50-day at $12.70 and then once it sustains a move or close above $13.63 with volume that hits near or above 482,072 shares. If that breakout triggers soon, then BIS will set up to re-test or possibly take out its next major overhead resistance levels at $15.03 to $15.80, or even $17.

Quidel

Quidel (QDEL) develops, manufactures and markets diagnostic testing solutions for applications in infectious diseases, women's health and gastrointestinal diseases. This stock closed up 5% at $27.07 in Monday's trading session.

Monday's Volume: 338,000
Three-Month Average Volume: 187,600
Volume % Change: 85%

From a technical perspective, QDEL spiked sharply higher here right above its 200-day moving average of $25.40 with above-average volume. This stock has been uptrending for the last three months, with shares moving higher from its low of $20.65 to its recent high of $28.24. During that uptrend, shares of QDEL have been making mostly higher lows and higher highs, which is bullish technical price action. This move higher on Monday is now starting to push shares of QDEL within range of triggering a big breakout trade. That trade will hit if QDEL manages to take out Monday's intraday high of $27.24 to some more key overhead resistance levels at $28.24 to $29.73 with high volume.

Traders should now look for long-biased trades in QDEL as long as it's trending above its 200-day at $25.40 or above its 50-day at $24.99 and then once it sustains a move or close above those breakout levels with volume that hits near or above 187,600 shares. If that breakout gets underway soon, then QDEL will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $32.24.

Global Power Equipment Group

Global Power Equipment Group (GLPW) provides customer-engineered equipment, and modification and maintenance services primarily in the U.S., Canada, Europe, Mexico, Asia, the Middle East and South America. This stock closed up 4.4% to $11.72 in Monday's trading session.

Monday's Volume: 200,000
Three-Month Average Volume: 76,412
Volume % Change: 188%

From a technical perspective, GLPW bounced notably higher here after it made a new 52-week low of $10.96 with above-average volume. This stock has been downtrending badly for the last month and change, with shares falling sharply from its high of $17.58 to its new 52-week low of $10.96. During that downtrend, shares of GLPW have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of GLPW have now entered oversold territory, since its current relative strength index reading is around 22. Oversold can always get more oversold, but it's also an area where a stock can make a powerful bounce higher from.

Traders should now look for long-biased trades in GLPW as long as it's trending above its new 52-week low of $10.96 and then once it sustains a move or close above Monday's intraday high of $11.75 with volume that hits near or above 76,412 shares. If that move gets started soon, then GLPW will set up to re-test or possibly take out its next major overhead resistance levels at around $13.50 to $14, or even $15.

Fiesta Restaurant Group

Fiesta Restaurant Group (FRGI) , through its subsidiaries, owns, operates, and franchises fast-casual restaurants. It operates its fast-casual restaurants under the Pollo Tropical and Taco Cabana brand names. This stock closed up 1% at $50.50 in Monday's trading session.

Monday's Volume: 351,000
Three-Month Average Volume: 247,148
Volume % Change: 50%

From a technical perspective, FRGI bounced modestly higher here right off its 50-day moving average of $49.20 with above-average volume. This stock recently formed a double bottom chart pattern $48.20 to $48.08. Following that bottom, shares of FRGI have now started to spike higher and move within range of triggering a near-term breakout trade. That trade will hit if FRGI manages to take out Monday's intraday high of $51.17 to some more key overhead resistance levels at $52.48 to its all-time high at $53.08 with high volume.

Traders should now look for long-biased trades in FRGI as long as it's trending above its 50-day at $49.20 or above those double bottom support levels and then once it sustains a move or close above those breakout levels with volume that this near or above 247,148 shares. If that breakout gets set off soon, then FRGI will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $60 to $65.

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.

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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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