These 7 Stocks Are Spiking on Big 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."

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.

Computer Programs & Systems

  • Monday's Volume: 847,000
  • Three-Month Average Volume: 231,866
  • Volume % Change: 296%

Computer Programs & Systems  (CPSI)  provides health care information technology solutions and services for rural and community hospitals and post-acute care facilities in the U.S. This stock closed up 4.8% to $28.81 in Monday's trading session.

From a technical perspective, Computer Programs & Systems spiked sharply higher on Monday right above its new 52-week low of $25.69 a share with strong upside volume flows. This stock recently gapped down sharply lower form around $39 a share to that $25.69 low with heavy downside volume flows. Following that move, shares of Computer Programs & Systems have now started to rebound higher off that $25.69 low and are quickly trending within range of triggering a near-term breakout trade. That trade will trigger if this stock manages to clear Monday's intraday high of $29.71 a share with high volume.

Traders should now look for long-biased trades in Computer Programs & Systems as long as it's trending above Monday's intraday low of $27.82 a share or above $26 a share and then once it sustains a move or close above Monday's intraday high of $29.71 a share with volume that hits near or above 231,866 shares. If that breakout hits soon, then this stock will set up to re-fill some of its recent gap-down-day zone that started near $39 a share.

Ametek

  • Monday's Volume: million 4.76 million
  • Three-Month Average Volume: 1.52 million
  • Volume % Change: 211%

Ametek  (AME)  manufactures and sells electronic instruments and electromechanical devices worldwide. This stock closed up 1.9% to $47.08 in Monday's trading session.

From a technical perspective, Ametek trended notably higher on Monday back above both its 50-day moving average of $46.85 a share and its 20-day moving average of $47.07 a share with strong upside volume flows. This high-volume bump to the upside is now quickly pushing shares of Ametek 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 some near-term overhead resistance levels at $47.50 to $48 a share and then above more near-term resistance at $48.23 a share with high volume.

Traders should now look for long-biased trades in Ametek as long as it's trending above some near-term support levels at $46 to $45.50 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.52 million 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 $49.26 to its 200-day moving average of $49.32, or even $51 to $52.50 a share.

Chefs' Warehouse

  • Monday's Volume: 447,000
  • Three-Month Average Volume: 137,766
  • Volume % Change: 223%

Chefs' Warehouse  (CHEF) , together with its subsidiaries, distributes specialty food products in the U.S. and Canada. This stock closed up 6.6% to $11.62 in Monday's trading session.

From a technical perspective, Chefs' Warehouse spiked sharply higher on Monday right above its new 52-week low of $10.31 a share with strong upside volume flows. This stock recently gapped down sharply lower from around $16.50 a share to under $11 a share with strong downside volume flows. Following that move, this stock went on to print a new 52-week low of $10.31 a share, before it has now started to rebound off that $10.31 low. Market players should now look for a continuation move to the upside in the short-term if shares of Chefs' Warehouse manage to clear Monday's intraday high of $11.69 a share with strong upside volume flows.

Traders should now look for long-biased trades in Chefs' Warehouse as long as it's trending above Monday's intraday low of $10.95 a share or above its new 52-week low of $10.31 a share and then once it sustains a move or close above Monday's intraday high of $11.69 a share with volume that hits near or above 137,766 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 $12.50 to its gap-down-day high near $14.50 a share.

Ferrari

  • Monday's Volume: 1.46 million
  • Three-Month Average Volume: 523,664
  • Volume % Change: 174%

Ferrari  (RACE) , together with its subsidiaries, designs, engineers, produces and sells luxury performance sports cars. This stock closed up 1.2% to $47.45 in Monday's trading session.

From a technical perspective, Ferrari spiked modestly higher on Monday with strong upside volume flows. This stock has been uptrending strong over the last two months, with shares moving higher off its low of $38.71 a share to its intraday high on Monday of $47.55 a share. During that uptrend, shares of Ferrari have been making mostly higher lows and higher highs, which is bullish technical price action. This high-volume spike to the upside on Monday is now quickly pushing this stock within range of triggering a key breakout trade. That trade will trigger if this stock manages to take out some past overhead resistance levels at $48.27 to $48.50 a share and then above more resistance at $49.76 a share with high volume.

Traders should now look for long-biased trades in Ferrari as long as it's trending above some near-term support levels at $46 to its 20-day moving average of $44.16 a share and then once it sustains a move or close above those breakout levels with volume that registers near or above 523,664 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 $54 to $58, or even its all-time high at $60.97 a share.

Vermillion Energy

  • Monday's Volume: 309,000
  • Three-Month Average Volume: 108,508
  • Volume % Change: 158%

Vermillion Energy  (VET)  acquires, explores, develops and produces crude oil and natural gas in North America, Europe and Australia. This stock closed up 2.1% to $35.55 in Monday's trading session.

From a technical perspective, Vermillion Energy gapped-up notably higher on Monday with above-average volume. This stock has been uptrending over the last month and change, with shares moving higher off its low of $29.81 a share to its intraday high on Monday of $36.59 a share. During that uptrend, shares of Vermillion Energy have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed this stock within range of triggering a big breakout trade above some past overhead resistance levels. That trade will trigger if this stock manages to take out Monday's intraday high of $36.59 a share to some near-term resistance at $36.90 a share and then above some past overhead resistance levels at $37.77 to $38.07 a share with high volume.

Traders should now look for long-biased trades in Vermillion Energy as long as it's trending above some near-term support at $34 a share or above its 20-day moving average of $32.87 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 108,508 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 $43 to $45 a share.

Daqo New Energy

  • Monday's Volume: 200,000
  • Three-Month Average Volume: 66,238
  • Volume % Change: 169%

Daqo New Energy  (DQ)  manufactures and sells polysilicon and wafers in the People's Republic of China. This stock closed up 4.7% to $25.81 in Monday's trading session.

From a technical perspective, Daqo New Energy spiked sharply higher right above some near-term support at $24 a share with above-average volume. This high-volume spike to the upside is now quickly pushing shares of Daqo New Energy 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 $26.22 to $26.65 a share and then above its 52-week high of $27.45 a share with high volume.

Traders should now look for long-biased trades in Daqo New Energy as long as it's trending above some near-term support at $24 a share or above its 50-day moving average of $22.70 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 66,238 shares. If that breakout kicks off soon, then this stock will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $32 to $35 a share.

Pfenex

  • Monday's Volume: 225,000
  • Three-Month Average Volume: 75,766
  • Volume % Change: 200%

Pfenex  (PFNX) , a clinical-stage biotechnology company, develops biosimilar therapeutics in the U.S. This stock closed up 12.4% to $10.48 in Monday's trading session.

From a technical perspective, Pfenex exploded sharply higher on Monday back above its 200-day moving average of $9.86 a share with strong upside volume flows. This high-volume rip to the upside is now quickly pushing shares of Pfenex within range of triggering a big breakout trade above some past overhead resistance levels. That trade will trigger if this stock manages to take out Monday's intraday high of $10.54 a share and then above some past overhead resistance at $11.35 a share with high volume.

Traders should now look for long-biased trades in Pfenex as long as it's trending above its 200-day moving average of $9.86 a share or above Monday's intraday low of $9.48 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 75,766 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 $12.75 to $14 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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