Six Stocks Spiking Up With Huge Volume

Professional investors running mutual funds and hedge funds don't just look at a stock's fundamentals, they also track unusual volume. Often, when heavy volume hits a stock, it precedes a notable increase in volatility.

Unusual volume can signal large fund activity, such as insider buying or selling, or buying or selling by "superinvestors." These types of investors like to get in well before a bigger trend, so it's always prudent to scan the market for unusual volume activity across all sectors.

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

IAC/InterActiveCorp

  • Wednesday's Volume: 2.48 million
  • Three-Month Average Volume: 633,885
  • Volume % Change: 317%

From a technical perspective, IAC/InterActiveCorp (IAC) spiked higher right above its 50-day at $74.54 with monster upside volume flows. This high-volume bump to the upside is now quickly pushing this stock within range of triggering a major breakout trade.

Traders should now look for long-biased trades in IAC/InterActiveCorp as long as it's trending above its 50-day at $74.54 or above more support at $74.05 and then once it breaks out above some near-term resistance levels at $76.48 to its 52-week high of $77.46 with volume that hits near or above 633,885 shares. If that breakout triggers 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 $80 to $85, or even $90 a share.

Karyopharm Therapeutics

  • Wednesday's Volume: 1.36 million
  • Three-Month Average Volume: 280,625
  • Volume % Change: 346%

From a technical perspective, Karyopharm Therapeutics (KPTI) ripped sharply higher right above its 50-day at $11.02 and back above its 20-day at $11.48 with heavy upside volume flows. This high-volume move to the upside is now quickly pushing this stock within range of triggering a big breakout trade above a key downtrend line.

Traders should now look for long-biased trades in Karyopharm Therapeutics as long as it's trending above its 50-day at $11.02 or above more near-term support at $10.32 and then once it breaks out above some key resistance levels at $12.05 to $12.50 and then over $13.19 with volume that hits near or above 280,625 shares. If that breakout fires off soon, then this stock will set up to re-test or possibly take out its next major resistance level at its 52-week high of $14.63 a share.

Pulse Biosciences

  • Wednesday's Volume: 853,000
  • Three-Month Average Volume: 339,914
  • Volume % Change: 139%

From a technical perspective, Pulse Biosciences (PLSE) trended up here right above some near-term support $20.67 and back above its 20-day at $24.50 with strong upside volume flows. This stock has been uptrending over the past few weeks, with shares moving up from its low of $17.14 to its recent high of $26.79. That strong upside is now quickly pushing shares of Pulse Biosciences within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in Pulse Biosciences as long as it's trending above Wednesday's intraday low of $21.61 and then once it breaks out above some near-term resistance at $26.79 with volume that hits near or above 339,914 shares. If that breakout develops soon, then this stock will set up to re-test or possibly take out its next resistance levels at $32 to its 52-week high of $35.93 a share.

Fastenal

  • Wednesday's Volume: 6.43 million
  • Three-Month Average Volume: 2.45 million
  • Volume % Change: 155%

From a technical perspective, Fastenal (FAST) spiked modestly higher right above some near-term support at $44.23 and back above its 200-day at $45.33 with unusual upside volume. This bump to the upside is also coming off notable oversold territory, since its current relative strength index reading is 30.8. This move is now quickly pushing shares of Fastenal within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in Fastenal as long as it's trending above some near-term support at $44.23 and then once it breaks out above some near-term resistance around $46 with volume that hits near or above 2.45 million shares. If that breakout materializes soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $47 to $48. Any high-volume move above $48 will then give this stock a chance to re-fill some of its previous gap-down-day zone that started near $51 a share.

NewLink Genetics

  • Wednesday's Volume: 2.55 million
  • Three-Month Average Volume: 521,796
  • Volume % Change: 323%

From a technical perspective, NewLink Genetics (NLNK) exploded sharply higher right above some near-term support at $15 and back above its 50-day at $18.22 with monster upside volume. Market players should now look for a continuation move higher in the short-term if this stock manages to clear some key resistance levels.

Traders should now look for long-biased trades in NewLink Genetics as long as it's trending above its 50-day at $18.22 or above $17 and then once it sustains a move or close above Wednesday's intraday high of $19.20 with volume that hits near or above 521,796 shares. If that move gets started soon, then this stock will set up to re-test or possibly take out its next resistance levels at $21 to around $22. Any high-volume move above $22 will then give this stock a chance to re-fill some of its recent gap-down-day zone that started just over $25 a share.

AutoNation

  • Wednesday's Volume: 3.57 million
  • Three-Month Average Volume: 1.14 million
  • Volume % Change: 239%

From a technical perspective, AutoNation (AN) ripped up here right above its 20-day at $41.43 with heavy upside volume. This high-volume spike is now quickly pushing this stock within range of triggering a near-term breakout trade.

Traders should look for long-biased trades in AutoNation as long as it's trending above its 20-day at $41.43 and then once it breaks out above resistance at $43.81 to its 50-day at $44.29 with volume near or above 1.14 million shares. If that breakout hits soon, then this stock will set up to re-test or possibly take out its next major resistance levels at $45.73 to $46, or even $47 to its 200-day at $47.36 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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