Six Stocks on the Move With Unusual Volume, Twitter Chart Included

Professional investors running mutual funds and hedge funds don't just look at a company'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 or "superinvestors" buying or selling. 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.

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Twitter

  • Monday's Volume: 47.38 million
  • Three-Month Average Volume: 19.31 million
  • Volume % Change: 163%

From a technical perspective, Twitter (TWTR) ripped higher here and closed back above its 200-day moving average of $17.53 with strong volume. Market players should now look for a continuation move to the upside in the short term, if it manages to clear some key resistance levels.

Traders should now look for long-biased trades in Twitter as long as it's trending above Monday's intraday low of $16.97 and then once it manages to clear Monday's intraday high of $17.65 with volume that hits near or above 19.31 million shares. If that move gets started soon, then this stock will set up to re-test or possibly take out its next key resistance levels at $18.77 to $20 a share.

Extended Stay America

  • Monday's Volume: 5.15 million
  • Three-Month Average Volume: 1.94 million
  • Volume % Change: 185%

From a technical perspective, Extended Stay America (STAY) spiked higher here right above its 20-day at $16.98 with heavy upside volume. This high-volume rip is now quickly pushing this stock within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in Extended Stay America as long as it's trending above its 20-day at $16.98 and then once it breaks out above Monday's intraday high of $18.08, then above more resistance at $18.65 with volume that hits near or above 1.94 million shares. If that breakout triggers soon, this stock will set up to re-test or possibly take out its next resistance levels at $20 to $21, or even $22 to $23 a share.

Silicon Motion Technology

  • Monday's Volume: 1.34 million
  • Three-Month Average Volume: 608,560
  • Volume % Change: 128%

From a technical perspective, Silicon Motion Technology (SIMO) trended notably higher here with heavy upside volume flows. Market players should now look for a continuation move to the upside in the short term if this stock manages to clear some key resistance levels.

Traders should now look for long-biased trades in Silicon Motion Technology as long as it's trending above Monday's intraday low of $48.80 and then once it clears Monday's intraday high of $50.58 to more resistance around $51 with volume that hits near or above 608,560 shares. If that move gets started soon, this stock will set up to re-test or possibly take out its next resistance levels at $53 to $54.50, or even $55.70 a share.

Dominion Diamond

  • Monday's Volume: 1.30 million
  • Three-Month Average Volume: 638,947
  • Volume % Change: 156%

From a technical perspective, Dominion Diamond (DDC) ripped higher here and closed back above its 20-day at $12.53 with strong upside volume. This high-volume jump is now quickly pushing shares of Dominion Diamond within range of triggering a big breakout trade.

Traders should now look for long-biased trades in Dominion Diamond as long as it's trending above some near-term support at $12 and then once it breaks out above some near-term resistance levels at $13 to its 52-week high of $13.31 with volume that hits near or above 638,947 shares. If that breakout develops soon, this stock will set up to make a run at its next key resistance levels at $14.50 to $15, or even $16 a share.

Huron Consulting Group

  • Monday's Volume: 382,000
  • Three-Month Average Volume: 150,693
  • Volume % Change: 143%

From a technical perspective, Huron Consulting Group (HURN) spiked notably higher here and broke out above some near-term resistance at $45.95 with above-average volume. This high-volume bump to the upside is now quickly pushing this stock within range of triggering another a key breakout trade.

Traders should now look for long-biased trades in Huron Consulting Group as long as it's trending above its 20-day at $42.97 and then once it breaks out above some near-term resistance levels at $47 to $47.65 with volume that hits near or above 150,693 shares. If that breakout hits soon, this stock will set up to re-test or possibly take out its next resistance levels at its 200-day of $51.75 to $53, or even $54 to $55 a share.

Tribune Media

  • Monday's Volume: 3.37 million
  • Three-Month Average Volume: 1.31 million
  • Volume % Change: 183%

From a technical perspective, Tribune Media (TRCO) gapped-up sharply higher here, above both its 50-day at $37.10 and its 20-day at $37.46 with monster upside volume flows. This high-volume bump to the upside is now quickly pushing shares of Tribune Media within range of triggering a big breakout trade.

Traders should look for long-biased trades in Tribune Media as long as it's trending above some key near-term support around $36 and then once it breaks out above some key resistance levels at $40.01 to its 52-week high of $40.72 with volume that hits near or above 1.31 million shares. If that breakout fires off soon, this stock will set up to re-test or possibly take out its next major resistance levels at $45 to $47, or even $50 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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