7 Breakout Stocks 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 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.

Semtech

  • Wednesday's Volume: 1 million
  • Three-Month Average Volume: 420,503
  • Volume % Change: 143%

Semtech (SMTC) designs, develops, manufactures, and markets analog and mixed-signal semiconductor products. This stock closed up 5% to $27.25 in Wednesday's trading session.

From a technical perspective, Semtech spiked sharply higher on Wednesday right off its 50-day moving average of $26.11 a share, with strong upside volume flows. This high-volume rip to the upside is now starting to push shares of Semtech 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 Wednesday's intraday high of $27.42 a share and then once it clears its 52-week high of $28.21 a share with high volume.

Traders should now look for long-biased trades in Semtech as long as it's trending above its 50-day moving average of $26.11 a share or above its 20-day moving average of $24.14 a share, and then once it sustains a move or close above those breakout levels with volume that hits near or above 420,503 shares. If that breakout fires 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 $30 to $35 a share.

Sally Beauty Holdings

  • Wednesday's Volume: 4.77 million
  • Three-Month Average Volume: 2.38 million
  • Volume % Change: 123%

Sally Beauty Holdings (SBH) is a specialty retailer and distributor of professional beauty supplies primarily in North America, South America and Europe. This stock closed up 4.6% to $25.99 in Wednesday's trading session.

From a technical perspective, Sally Beauty Holdings spiked sharply higher on Wednesday, right above its new 52-week low of $23.72 a share with heavy upside volume flows. This stock recently gapped down sharply lower from $30.17 a share to that new 52-week low of $23.72 a share with monster downside volume. Following that move, shares of Sally Beauty Holdings have now started to rebound off that $23.72 low, and that move is quickly pushing this stock within range of triggering a near-term breakout trade. That trade will trigger if this stock manages to take out Wednesday's intraday high of $26.92 to $27 a share with high volume.

Traders should now look for long-biased trades in Sally Beauty Holdings as long as it's trending above Wednesday's intraday low of $24.65 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 2.38 million shares. If that breakout hits soon, then this stock will set up to refill some of its recent gap-down-day zone that started at $30.17 a share.

Post Holdings

  • Wednesday's Volume: 1.91 million
  • Three-Month Average Volume: 773,948
  • Volume % Change: 157%

Post Holdings (POST) manufactures, markets and sells branded and private label ready-to-eat cereal products primarily in the U.S., Puerto Rico, Canada, Mexico and the Caribbean. This stock closed up 3% to $72.83 in Wednesday's trading session.

From a technical perspective, Post Holdings spiked notably higher on Wednesday right above some near-term support at $69.95 a share with strong upside volume flows. This stock has been downtrending badly over the last four months and change, with shares falling off the high of $89 a share to its recent low of $68.76 a share. During that downtrend, shares of Post Holdings have been making mostly lower highs and lower lows, which is bearish technical price action.

That said, this stock has now started to rebound off its recent low of $68.76, with a number of strong upside volume sessions. That rebound is now quickly pushing shares of Post Holdings within range of triggering a breakout trade. That trade will trigger if this stock manages to take out Wednesday's intraday high of $72.96 a share to $73 a share with high volume.

Traders should now look for long-biased trades in Post Holdings as long as it's trending above some key near-term support levels at $69.95 to $68.76 a share and then once it sustains a move or close above those breakout levels with volume that registers near or above 773,948 shares. If that breakout develops soon, then this stock will set up to retest or possibly take out its next major overhead resistance levels at its 20-day moving average of $75.41 a share to its 200-day moving average of $76.55 a share, or even its 50-day moving average of $77.95 a share to $82 a share.

HomeStreet

  • Wednesday's Volume: 457,000
  • Three-Month Average Volume: 186,463
  • Volume % Change: 145%

HomeStreet (HMST) provides financial services primarily in the Pacific Northwest, California and Hawaii. This stock closed up 6.6% to $28.70 in Wednesday's trading session.

From a technical perspective, HomeStreet ripped sharply higher on Wednesday right off its 20-day moving average of $26.89 a share with heavy upside volume action. This high-volume spike to the upside managed to push this stock into breakout and new 52-week-high territory, after it closed above some key near-term overhead resistance levels at $28.55 to $28.60 a share. Market players should now look for a continuation move to the upside in the short-term if shares of HomeStreet manage to take out Wednesday's intraday high and its new 52-week high of $28.85 a share with strong volume.

Traders should now look for long-biased trades in HomeStreet as long as it's trending above $27.50 a share or above its 20-day moving average of $26.89 a share and then once it sustains a move or close above its new 52-week high of $28.85 a share with volume that hits near or above 186,463 shares. If that move gets underway 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 action are $30 to $35 a share.

Hyatt Hotels

  • Wednesday's Volume: 976,000
  • Three-Month Average Volume: 364,772
  • Volume % Change: 174%

Hyatt Hotels (H) is a hospitality company that develops, owns, operates, manages, franchises, licenses, or provides services to full and select service hotels, resorts and residential and vacation properties. This stock closed up 2.9% to $53.82 in Wednesday's trading session.

From a technical perspective, Hyatt Hotels jumped notably higher on Wednesday right above its 20-day moving average of $51.18 a share, with strong upside volume flows. This stock has been uptrending over the last few weeks, with shares moving higher off its low of $47.96 a share to its intraday high on Wednesday of $53.87 a share. During that uptrend, shares of Hyatt Hotels have been making mostly higher lows and higher highs, which is bullish technical price action

That uptrend has now pushed 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 Wednesday's intraday high of $53.87 a share and then once it clears its 52-week high of $54.82 a share with high volume.

Traders should now look for long-biased trades in Hyatt Hotels as long as it's trending above Wednesday's intraday low of $51.86 a share or above its 20-day moving average of $51.18 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 364,772 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 $56 to $58, or even $60 to $62 a share.

Diebold

  • Wednesday's Volume: 2.78 million
  • Three-Month Average Volume: 979,088
  • Volume % Change: 212%

Diebold (DBD) provides financial self-service delivery, integrated services and software, and security systems to the financial, commercial, retail and other markets. This stock closed up 5.6% to $24.25 in Wednesday's trading session.

From a technical perspective, Diebold ripped sharply higher on Wednesday right above its 20-day moving average of $22.40 a share and back above its 50-day moving average of $23.60 a share with monster volume flows. This high-volume jump to the upside is now quickly pushing shares of Diebold 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 Wednesday's intraday high of $24.50 to $24.74 a share and then once it clears its 200-day moving average of $25.19 a share to $26.07 a share with high volume.

Traders should now look for long-biased trades in Diebold 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 $22.40 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 979,088 shares. If that breakout fires off soon, then this stock will set up to retest or possibly take out its next major overhead resistance levels at $28 to $28.88, or even $30 to $31 a share.

Dick's Sporting Goods

  • Wednesday's Volume: 5.23 million
  • Three-Month Average Volume: 1.90 million
  • Volume % Change: 161%

Dick's Sporting Goods (DKS) is a sporting goods retailer primarily in the eastern U.S. This stock closed up 1.9% to $57.80 in Wednesday's trading session.

From a technical perspective, Dick's Sporting Goods trended modestly higher on Wednesday back above its 20-day moving average of $57.02 a share and briefly above its 50-day moving average of $57.83 a share with brisk upside volume flows. This stock recently formed a double bottom chart pattern, after shares found some buying interest at $54.35 to $54.26 a share over the last month.

Following that potential bottom, shares of Dick's Sporting Goods have now started to rebound higher off those support levels, and it's beginning to move within range of triggering a big breakout trade. That trade will trigger if this stock manages to take out Wednesday's intraday high of $58.90 a share and then once it clears its 52-week high of $62.88 a share with high volume.

Traders should now look for long-biased trades in Dick's Sporting Goods as long as it's trending above Wednesday's intraday low of $56.45 a share or above those recent double bottom support levels and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.90 million shares. If that breakout materializes 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 $65 to $70 a share.

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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