These 7 Stocks Are Spiking on Big Volume -- Here's How to Trade Them Now

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."

Stocks with unusual volume are something that I tweet about on a daily basis. These are also the exact type of stocks that I love to trade and alert to my subscribers in real-time.

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.

 

Sabra Health Care REIT

  • Monday's Volume: 1.25 million
  • Three-Month Average Volume: 508,554
  • Volume % Change: 139%

Sabra Health Care REIT  (SBRA)  operates as a real estate investment trust in the U.S. This stock traded up 2.8% to $22.67 in Monday's trading session.

From a technical perspective, Sabra Health Care REIT spiked up notably higher on Monday and broke out above some near-term overhead resistance at $22.41 a share with strong upside volume flows. This high-volume move to the upside is now quickly pushing shares of Sabra Health Care REIT within range of triggering another significant breakout trade. That trade will trigger if this stock manages to clear Monday's intraday high of $22.72 a share and then once it takes out more key resistance at $23.08 a share with high volume.

Traders should now look for long-biased trades in Sabra Health Care REIT as long as it's trending above its 50-day moving average of $21.06 a share or above its 20-day moving average of $20.92 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 508,554 shares. If that breakout hits soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $24.20 to $25.50, or even its 52-week high of $27.66 a share.

Restaurant Brands International

  • Monday's Volume: million 2.14 million
  • Three-Month Average Volume: 1.09 million
  • Volume % Change: 103%

Restaurant Brands International  (QSR)  owns and operates quick service restaurants under the Burger King and Tim Horton's brand names. This stock traded up 4% to $43.42 in Monday's trading session.

From a technical perspective, Restaurant Brands International ripped sharply higher on Monday right above its 50-day moving average of $41.73 a share with strong upside volume flows. This high-volume rip to the upside is now quickly pushing shares of Restaurant Brands International within range of triggering a major breakout trade above some key overhead resistance levels. That trade will trigger if this stock manages to clear Monday's intraday high of $43.49 a share and then once it takes out more key resistance levels at $44.02 to its all-time high of $44.94 a share with high volume.

Traders should now look for long-biased trades in Restaurant Brands International as long as it's trending above its 50-day moving average of $41.73 a share or above more near-term support at $41 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.09 million shares. If that breakout fires off soon, then this stock will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $50 to $55 a share.

Trupanion

  • Monday's Volume: 333,000
  • Three-Month Average Volume: 170,638
  • Volume % Change: 136%

Trupanion  (TRUP)  provides medical insurance plans for cats and dogs on monthly subscription basis in the U.S., Canada and Puerto Rico. This stock traded up 3.4% to $15.21 in Monday's trading session.

From a technical perspective, Trupanion spiked notably higher right above its 50-day moving average of $14.13 a share and into breakout territory above some near-term overhead resistance at $15 a share with strong upside volume flows. This stock has been uptrending over the last month and change, with shares moving higher off its low of $11.15 a share to its intraday high on Monday of $15.33 a share. During that uptrend, shares of Trupanion have been making mostly higher lows and higher highs, which is bullish technical price action. This strong trend is now starting to push this stock within range of triggering a major breakout trade. That trade will trigger if this stock manages to take out Monday's intraday high of $15.33 a share and then once it clears its all-time high of $16.25 a share with high volume.

Traders should now look for long-biased trades in Trupanion as long as it's trending above its 50-day moving average of $14.13 a share or above its 20-day moving average of $13.70 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 170,638 shares. If that breakout hits soon, then this stock will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $19 to $20 a share.

Teladoc

  • Monday's Volume: 1.23 million
  • Three-Month Average Volume: 400,551
  • Volume % Change: 226%

Teladoc  (TDOC)  provides telehealth services to its members and their customers in the U.S. This stock traded up 3.8% to $16.05 in Monday's trading session.

From a technical perspective, Teladoc jumped notably higher on Monday right off both its 200-day moving average of $14.84 a share and its 20-day moving average of $14.86 a share with strong upside volume flows. This stock has been uptrending strong over the last two months and change, with shares ripping higher off its low of $9.28 a share to its recent high of $16.40 a share. During that uptrend, shares of Teladoc have been consistently making higher lows and higher highs, which is bullish technical price action. This jump to the upside on Monday is now starting to push this stock within range of triggering a near-term breakout trade. That trade will trigger if this stock manages to take out some near-term overhead resistance levels at Monday's intraday high of $16.07 a share to some more key resistance at $16.40 high volume.

Traders should now look for long-biased trades in Teladoc as long as it's trending above Monday's intraday low of $14.94 a share or above more near-term support at $14.36 a share and then once it sustains a move or close above those breakout levels with volume that registers near or above 400,551 shares. If that breakout hits soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $18 to $19, or even $20 to $20.80 a share.

AAR

  • Monday's Volume: 425,000
  • Three-Month Average Volume: 186,378
  • Volume % Change: 108%

AAR (AIR)  provides products and services to commercial aviation, government and defense markets worldwide. This stock traded up 3.9% to $24.26 in Monday's trading session.

From a technical perspective, AAR ripped sharply higher on Monday right off its 20-day moving average of $23.16 a share and back above its 50-day moving average of $23.60 a share with strong upside volume flows. This stock recently formed a double bottom chart pattern, after shares found some buying interest at $21.78 to $21.99 a share. Following that potential bottom, shares of AAR have now started to spike sharply higher above some key moving averages, and it's quickly trending within range of triggering a near-term breakout trade. That trade will trigger if this stock manages to take out Monday's intraday high of $24.31 a share to some key resistance at $25.28 a share with high volume.

Traders should now look for long-biased trades in AAR as long as it's trending above its 50-day moving average of $23.60 a share or above its 20-day moving average of $23.16 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 186,378 shares. If that breakout fires off soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $26.75 to $29, or even $32.50 a share.

XPO Logistics

  • Monday's Volume: 2.64 million
  • Three-Month Average Volume: 1.44 million
  • Volume % Change: 99%

XPO Logistics  (XPO)  provides transportation and logistics services primarily in the U.S. This stock traded up 5.8% to $26.81 in Monday's trading session.

From a technical perspective, XPO Logistics ripped sharply higher on Monday right above some near-term support at $24.02 a share and back above its 20-day moving average of $26.05 a share with strong upside volume flows. This high-volume rip to the upside is now starting to push shares of XPO Logistics within range of triggering a near-term breakout trade above some key overhead resistance levels. That trade will trigger if this stock manages to take out both its 50-day moving average of $27.09 a share and its 200-day moving average of $27.50 a share and once it clears more key resistance at $27.94 a share with high volume.

Traders should now look for long-biased trades in XPO Logistics as long as it's trending above its 20-day moving average of $26.05 a share or above Monday's intraday low of $24.32 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.44 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 to $30.30, or even $32 to $34 a share.

Continental Building Products

  • Monday's Volume: 1.51 million
  • Three-Month Average Volume: 428,667
  • Volume % Change: 230%

Continental Building Products  (CBPX)  manufactures and sells gypsum wallboard and complementary finishing products in the eastern U.S. and eastern Canada. This stock traded up 4% to $24.35 in Monday's trading session.

From a technical perspective, Continental Building Products ripped sharply higher on Monday and broke out into new all-time-high territory above some near-term overhead resistance at $23.77 a share with strong upside volume flows. Market players should now look for a continuation move to the upside in the short-term if shares of Continental Building Products manage to take out its new all-time high at $24.42 a share with strong volume.

Traders should now look for long-biased trades in Continental Building Products as long as it's trending above Monday's intraday low of $23.50 a share or above its 50-day moving average of $22.10 a share and then once it sustains a move or close above its new all-time high of $24.42 a share with volume that hits near or above 428,667 shares. If that breakout takes hold soon, then this stock will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that move are $29 to $30 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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