7 Stocks Spiking on Unusual Volume

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.

Vera Bradley

  • Monday's Volume: 4.37 million
  • Three-Month Average Volume: 703,977
  • Volume % Change: 686%

Vera Bradley  (VRA) , together with its subsidiaries, designs, manufactures and sells handbags, accessories and luggage and travel items for women of all ages under the Vera Bradley brand. This stock traded up 6.8% to $16.63 in Monday's trading session.

From a technical perspective, Vera Bradley ripped sharply higher on Monday and gapped-up closing just off its intraday high of $17.03 a share with monster upside volume flows. This high-volume move to the upside pushed this stock into breakout territory, after it cleared some near-term overhead resistance levels at $16.23 t o$16.55 a share. Shares of Vera Bradley are now quickly trending within range of triggering another big breakout trade. That trade will trigger if this stock manages to take out some more key near-term overhead resistance levels at $17 to $17.42 a share with high volume.

Traders should now look for long-biased trades in Vera Bradley as long as it's trending above Monday's intraday low $16.38 or above more near-term support at its 20-day moving average of $15.04 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 703,977 shares. If that breakout takes hold soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $19 to $20 a share.

Targa Resources

  • Monday's Volume: 11.80 million
  • Three-Month Average Volume: 3.45 million
  • Volume % Change: 331%

Targa Resources  (TRGP) , through its general and limited partner interests in Targa Resources Partners, provides midstream natural gas and natural gas liquid services in the U.S. This stock traded up 5.2% to $26.88 in Monday's trading session.

From a technical perspective, Targa Resources spike sharply higher right off $25 a share with monster upside volume flows. This stock has been uptrending strong over the last few weeks, with shares moving higher off its low of $14.55 to its recent high of $27.61 a share. During that uptrend, shares of Targa Resources have been consistently making higher lows and higher highs, which is bullish technical price action. This high-volume move to the upside on Monday is now quickly pushing this stock within range of triggering a big breakout trade above some key overhead resistance levels. That trade will trigger if this stock manages to take out some near-term overhead resistance levels at $27.61 to $27.77 a share with high volume.

Traders should now look for long-biased trades in Targa Resources as long as it's trending above some near-term support at $25 a share or above its previous breakout level at $23.23 a share and then once it sustains a move or close above those breakout levels with volume that registers near or above 3.45 million shares. If that breakout triggers soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $31.52 to $35 a share.

Icahn Enterprises

  • Monday's Volume: 475,000
  • Three-Month Average Volume: 156,534
  • Volume % Change: 249%

Icahn Enterprises  (IEP) , through its subsidiaries, operates in investment, automotive, energy, metals, railcar, gaming, food packaging, real estate and home fashion businesses in the U.S., Germany and internationally. This stock traded up 3.6% to $59.50 in Monday's trading session.

From a technical perspective, Icahn Enterprises spiked notably higher on Monday right above its 50-day moving average of $55.90 a share with strong upside volume flows. This stock has been uptrending strong over the last few weeks, with shares moving higher off its low of $47.11 to its intraday high on Monday of $62.65 a share. During that uptrend, shares of Icahn Enterprises have been consistently making higher lows and higher highs, which is bullish technical price action. Market players should now look for a continuation move to the upside in the short-term if this stock manages to clear Monday's intraday high of $62.65 a share with high volume.

Traders should now look for long-biased trades in Icahn Enterprises as long as it's trending above its 50-day moving average of $55.90 a share and then once it sustains a move or close above Monday's intraday high of $62.65 a share with volume that hits near or above 156,534 shares. If this move gets underway soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $65.14 to $67.50, or even $70 to its 200-day moving average of $70.99 a share.

Frank's International

  • Monday's Volume: 1.55 million
  • Three-Month Average Volume: 476,653
  • Volume % Change: 211%

Frank's International  (FI)  provides various engineered tubular services for the oil and gas exploration and production companies in the U.S. and internationally. This stock traded up 6.9% to $13.89 in Monday's trading session.

From a technical perspective, Frank's International ripped sharply higher on Monday back above its 20-day moving average of $13.54 a share with strong upside volume flows. This high-volume move to the upside also briefly pushed this stock back above its 50-day moving average of $14.35 a share, before the stock closed below that level at $13.89 a share. Market players should now look for a continuation move to the upside in the short-term if shares of Franks' International manage to clear Monday's intraday high of $14.49 a share and then once it takes out more key overhead resistance levels at $14.74 to $15 a share with high volume.

Traders should now look for long-biased trades in Frank's International as long as it's trending above Monday's intraday low of $13.23 a share and then once it sustains a move or close above $14.49 to $15 a share with volume that registers near or above 476,653 shares. If that move gets underway soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $16 to its 200-day moving average of $16.35, or even $17 to $17.40 a share.

Tredegar

  • Monday's Volume: 217,000
  • Three-Month Average Volume: 86,630
  • Volume % Change: 173%

Tredegar  (TG) , through its subsidiaries, manufactures and sells plastic films and aluminum extrusions worldwide. This stock traded up 10.6% to $13.73 in Monday's trading session.

From a technical perspective, Tredegar ripped sharply higher on Monday right off its 50-day moving average of $12.89 a share with strong upside volume flows. This high-volume move to the upside has now pushed this stock into breakout territory, after it cleared some near-term overhead resistance at $13.24 a share. Market players should now look for a continuation move to the upside in the short-term if shares of Tredegar manage to take out Monday's intraday high of $14.18 a share and some more near-term resistance at $14.24 a share with high volume.

Traders should now look for long-biased trades in Tredegar as long as it's trending above its previous breakout level of $13.24 a share or above its 50-day moving average of $12.89 a share and then once it sustains a move or close above $14.18 to $14.24 a share with volume that hits near or above 86,630 shares. If that move gets started soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $14.96 to $15.73, or even its 200-day moving average of $15.85 to $16.97 a share.

IDT

  • Monday's Volume: 280,000
  • Three-Month Average Volume: 121,134
  • Volume % Change: 157%

IDT  (IDT)  operates primarily in the telecommunications and payment industries in the U.S. and internationally. This stock traded up 5.5% to $13.03 in Monday's trading session.

From a technical perspective, IDT ripped sharply higher on Monday right above its 50-day moving average of $11.88 a share with strong upside volume flows. This high-volume spike higher managed to push shares of IDT into breakout territory, after the stock cleared some near-term overhead resistance levels at $12.58 to $12.99 a share. Market players should now look for a continuation move to the upside in the short-term if this stock manages to clear Monday's intraday high of $13.18 a share with high volume.

Traders should now look for long-biased trades in IDT as long as it's trending above $12.58 or above Monday's intraday low of $12.27 a share and then once it sustains a move or close above Monday's intraday high of $13.18 a share with volume that hits near or above 121,134 shares. If that move gets underway soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $13.75 to its 200-day moving average of $14.35, or even $14.65 a share.

Newfield Exploration

  • Monday's Volume: 12.01 million
  • Three-Month Average Volume: 4.91 million
  • Volume % Change: 181%

Newfield Exploration  (NFX) , an independent energy company, engages in the exploration, development and production of crude oil, natural gas and natural gas liquids. This stock traded up 4.6% to $27.23 in Monday's trading session.

From a technical perspective, Newfield Exploration ripped higher right off some near-term support at $26 a share with strong upside volume flows. This stock has been uptrending strong over the last few weeks, with shares moving higher off its low of $20.84 to its intraday high on Monday of $27.63 a share. During that uptrend, shares of Newfield Exploration have been consistently making higher lows and higher highs, which is bullish technical price action. This high-volume spike to the upside is now quickly pushing this stock within range of triggering a near-term breakout trade. That trade will hit if this stock manages to take out its 50-day moving average of $27.63 a share with high volume.

Traders should now look for long-biased trades in Newfield Exploration as long as it's trending above some near-term support at $26 a share or above its 20-day moving average of $24.94 a share and then once it sustains a move or close above its 50-day moving average of $27.63 a share with volume that hits near or above 4.91 million shares. If that breakout develops soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $29.18 to around $32 a share.

 

Disclosure: 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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