6 Stocks on the Move With Big Volume

Professional traders running mutual funds and hedge funds don't just look at a stock's price moves, they track big changes in volume activity. Often, when above-average volume moves into a stock, 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." These types of traders like to get in well before a bigger trend, so it's always a smart move to monitor unusual volume activity.

With that in mind, let's take a look at several stocks that are experiencing unusual volume activity.

Lululemon Athletica

  • Thursday's Volume: 3.04 million
  • Three-Month Average Volume: 2.81 million
  • Volume % Change: 83%

From a technical perspective, Lululemon Athletica (LULU) is jumping higher here right off its new 52-week low of $49.40 with strong upside volume flows. This high-volume trend to the upside is now quickly pushing this stock within range of triggering a big breakout trade.

Traders should now look for long-biased trades in the athletic apparel retailer as long as it's trending above its new 52-week low of $49.40 and then once it breaks out above some near-term resistance levels at $51 to $52 and then above its recent gap-down-day high around $53 with volume that hits near or above 2.81 million shares. If that breakout fires off soon, then this stock will set up to re-fill some of its previous gap-down-day zone that started at $66.34 a share.

Whole Foods Market

  • Thursday's Volume: 4.76 million
  • Three-Month Average Volume: 4.82 million
  • Volume % Change: 88%

From a technical perspective, Whole Foods Market (WFM) is spiking higher here right above its 200-day moving average of $30.07 and into breakout territory above a key downtrend line with strong upside volume flows. This bump to the upside is now quickly pushing shares of the grocer within range of triggering another near-term breakout trade.

Traders should now look for long-biased trades in Whole Foods Market as long as it's trending above its 200-day at $30.07 or above its 50-day at $29.79 and then once it breaks out above resistance at $31.44 with volume that hits near or above 4.82 million shares. If that breakout hits soon, then this stock will set up to re-test or possibly take out its next resistance levels at $32.50 to $34.19, or even $35 to its 52-week high of $35.58 a share.

Kohl's

  • Thursday's Volume: 5.18 million
  • Three-Month Average Volume: 4.52 million
  • Volume % Change: 123%

From a technical perspective, Kohl's (KSS) is ripping higher here right above some near-term support at $37.44 and back above its 20-day at $39.01 with strong upside volume flows. This high-volume jump to the upside is now quickly pushing this stock within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in the retail chain as long as it's trending above some near-term support levels at $37.44 to $36.66 and then once it sustains a move or close above resistance levels at $40.97 to $41.07 with volume that hits near or above 4.52 million shares. If that breakout materializes soon, then this stock will set up to re-test or possibly take out its next resistance levels at its 200-day of $42.86 to $43.91 a share. Any high-volume move above $43.91 will then give this stock a chance to re-fill some of its previous gap-down-day zone from January that started at $51.29 a share.

Greenbrier

  • Thursday's Volume: 858,000
  • Three-Month Average Volume: 651,917
  • Volume % Change: 144%

From a technical perspective, Greenbrier  (GBX) gapped-up sharply recently from around $42 to $49 with strong upside volume. This stock is now starting to trend higher again on Thursday with heavy volume, and it's quickly moving within range of triggering a big breakout trade.

Traders should now look for long-biased trades in the transportation manufacturing company as long as it's trending above some near-term support at $46 or at $45 and then once it breaks out above some near-term resistance levels at $49 to its 52-week high of $49.50 with volume that hits near or above 651,917 shares. If that breakout hits 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 move are $55 to $60 a share.

Nutanix

  • Thursday's Volume: 2.06 million
  • Three-Month Average Volume: 1.36 million
  • Volume % Change: 142%

From a technical perspective, Nutanix (NTNX) is ripping sharply higher here right above its new 52-week low of $17.07 with strong upside volume flows. This stock has been downtrending badly over the last two months, with shares falling sharply off its high of $33.95 to its recent low of $17.07. That said, shares of Nutanix are now showing signs of reversing that downtrend, and it's starting to move within range of triggering a near-term breakout trade above a key downtrend line.

Traders should now look for long-biased trades in the software company as long as it's trending above its new 52-week low of $17.07 and then once it breaks out above some near-term resistance at $19 to its 20-day at $19.53 and then above $20.06 with volume that hits near or above 1.36 million shares. If that breakout triggers soon, then this stock will set up to re-test or possibly take out its next resistance levels at $21.15 to $22, or even $24 to $25 a share.

Lamb Weston Holdings

  • Thursday's Volume: 1.66 million
  • Three-Month Average Volume: 1.30 million
  • Volume % Change: 101%

From a technical perspective, Lamb Weston Holdings (LW) is jumping notably higher here right off its 50-day at $40.48 and back above its 20-day at $42.34 with strong upside volume. This high-volume rip to the upside is now quickly pushing this stock within range of triggering a major breakout trade.

Traders should look for long-biased trades in the vegetable supplier as long as it's trending above its 50-day at $40.48 and then once it breaks out above resistance at $43.21 to its all-time high of $43.48 with volume near or above 1.30 million shares. If that breakout develops 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 $50 to $55, or even $60 a share.

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

More from Stocks

If a Recession Occurs, Here's Why Home Prices May Actually Rise

If a Recession Occurs, Here's Why Home Prices May Actually Rise

Dow and S&P 500 Extend Their Record Rallies

Dow and S&P 500 Extend Their Record Rallies

Caterpillar Stock: Is Now a Good Time for Investors to Dig In?

Caterpillar Stock: Is Now a Good Time for Investors to Dig In?

Micron Stock: The Great Debate Continues

Micron Stock: The Great Debate Continues

JPMorgan Is Leading the Charge Higher: Here's When Investors Should Buy More

JPMorgan Is Leading the Charge Higher: Here's When Investors Should Buy More