3 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.

FibroGen

FibroGen  (FGEN), a research-based biopharmaceutical company, discovers, develops, and commercializes therapeutic agents to treat serious unmet medical needs. This stock is trading up 7.5% to $19.69 in Monday's trading session.

Monday's Volume: 540,000
Three-Month Average Volume: 343,553
Volume % Change: 248%

From a technical perspective, FGEN is ripping sharply higher here and breaking out above some near-term overhead resistance at $18.84 with above-average volume. This stock recently formed a double bottom chart pattern at $17.04 to $16.95. Following that bottom, shares of FGEN have been rebounding higher and this stock is breaking out on Monday with strong upside volume flows. That move has now pushed shares of FGEN within range of triggering another big breakout trade. That trade will trigger if FGEN manages to take out some key near-term overhead resistance at $20 a share with high volume.

Traders should now look for long-biased trades in FGEN as long as it's trending above $18.84 or above $18 and then once it sustains a move or close above $20 with volume that hits near or above 343,553 shares. If that breakout gets set off soon, then FGEN will set up to re-test or possibly take out its next major overhead resistance levels at $22 to $23, or even its 50-day moving average of $24.36.

Rubicon Project

Rubicon Project (RUBI) a technology company, engages in automating the buying and selling of advertising. This stock is trading up 3.8% to $19.08 in Monday's trading session.

Monday's Volume: 341,000
Three-Month Average Volume: 362,120
Volume % Change: 104%

From a technical perspective, RUBI is trending higher here and breaking out above some near-term overhead resistance levels at $18.57 to $18.75 with decent upside volume flows. This move to the upside on Monday is now starting to push shares of RUBI within range of triggering another big breakout trade. That trade will hit if RUBI manages to take out some key near-term overhead resistance levels at $19.50 to $20, and then above its 52-week high of $20.59 with high volume.

Traders should now look for long-biased trades in RUBI as long as it's trending above Monday's intraday low of $18.40 or above more near-term support at around $18 and then once it sustains a move or close above those breakout levels with volume that hits near or above 362,120 shares. If that breakout gets set off soon, then RUBI will set up to re-test or possibly take out its all-time high at $23.20.

Tuniu

Tuniu  (TOUR) provides online leisure travel services in China. This stock is trading up 3.6% at $17.98 in Monday's trading session.

Monday's Volume: 635,000
Three-Month Average Volume: 564,172
Volume % Change: 108%

From a technical perspective, TOUR is spiking higher here right above its 50-day moving average of $16.48 with decent upside volume flows. This stock recently formed a double bottom chart pattern at $15.72 to $15.60 a share. Following that bottom, shares of TOUR have started to uptrend and it's now spiking within range of triggering a major breakout trade. That trade will hit if TOUR manages to take out some key near-term overhead resistance levels at $19 to $20.78 with high volume.

Traders should now look for long-biased trades in TOUR as long as it's trending above Monday's intraday low of $17.28 or above its 50-day moving average of $16.48 and then once it sustains a move or close above those breakout levels with volume that hits near or above 564,172 shares. If that breakout hits soon, then TOUR will set up to re-test or possibly take out its next major overhead resistance levels at its $24 to its 52-week high of $24.99.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

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