6 Hot Unusual Volume Setups

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 sharp increase in share price.

Unusual volume can signal institutional 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 six stocks that are showing up on unusual volume scans.

Alibaba Group

  • Thursday's Volume: 37.09 million
  • Three-Month Average Volume: 9.46 million
  • Volume % Change: 280%

From a technical perspective, Alibaba Group (BABA) spiked notably higher here back above its 20-day moving average of $117.87 with monster upside volume. This high-volume bump to the upside is quickly pushing this stock within range of triggering a near-term breakout trade.

Traders should look for long-biased trades in Alibaba Group as long as it's trending above its 20-day at $117.87 and then once it breaks out above Thursday's intraday high of $122.63 to its all-time high of $124.34 with volume that hits near or above 9.46 million shares. Some possible upside targets off that breakout are $130 to $135, or even $140 a share.

Aquinox Pharmaceuticals

  • Thursday's Volume: 297,000
  • Three-Month Average Volume: 97,370
  • Volume % Change: 194%

From a technical perspective, Aquinox Pharmaceuticals (AQXP) ripped higher here right off its 20-day at $14.60 and back above its 50-day at $15.26 with strong upside volume. Market players should look for a continuation move higher in the short-term if this stock manages to clear Thursday's intraday high of $16.05 with strong volume.

Traders should look for long-biased trades in Aquinox Pharmaceuticals as long as it's trending above some near-term support at $14.19 and then once it takes out Thursday's intraday high of $16.05 with volume that hits near or above 97,370 shares. If that move starts soon, then this stock will set up to re-test or possibly take out its next key resistance levels $17.40 to $18.50, or even its 52-week high of $19.97 a share.

Sohu.com

  • Thursday's Volume: 991,000
  • Three-Month Average Volume: 226,132
  • Volume % Change: 333%

From a technical perspective, Sohu.com (SOHU) spiked sharply higher here and broke out above a number of near-term resistance levels with heavy upside volume flows. This rip to the upside is quickly pushing shares of Sohu.com within range of triggering another big breakout trade.

Traders should look for long-biased trades in Sohu.com as long as it's trending above $42.68 or above $42 and then once it breaks out above Thursday's intraday high of $45.31 to its 52-week high of $45.84 with volume that hits near or above 226,132 shares. If that breakout develops soon, then this stock will set up to re-test or possibly take out its next key resistance levels at $50 to $53 a share.

Shopify

  • Thursday's Volume: 7.97 million
  • Three-Month Average Volume: 1.63 million
  • Volume % Change: 427%

From a technical perspective, Shopify (SHOP) jumped higher here back above its 20-day at $84.33 with monster upside volume flows. This high-volume jump to the upside is quickly pushing shares of Shopify within range of triggering a major breakout trade.

Traders should look for long-biased trades in Shopify as long as it's trending above its 20-day at $84.33 and then once it breaks out above Thursday's intraday high of $92.98 to its all-time high of $95.88 with volume that hits near or above 1.63 million shares. Some possible upside targets off that breakout are $100 to $105, or even $110 to $115 a share.

Brixmor Property Group

  • Thursday's Volume: 6.06 million
  • Three-Month Average Volume: 2.83 million
  • Volume % Change: 137%

From a technical perspective, Brixmor Property Group (BRX) jumped higher here right above its new 52-week low of $17.49 with heavy upside volume flows. This high-volume spike to the upside is quickly pushing this stock within range of triggering a major breakout trade.

Traders should look for long-biased trades in Brixmor Property Group as long as it's trending above its new 52-week low of $17.49 and then once it breaks out above some near-term resistance levels at $19 to its 20-day at $19.48 with volume that hits near or above 2.83 million shares. If that breakout triggers soon, then this stock will set up to re-test or possibly take out its next key resistance levels at its 50-day at $20.54 to $21.21, or even $22 to $23 a share.

La Jolla Pharmaceuticals

  • Thursday's Volume: 2.93 million
  • Three-Month Average Volume: 902,555
  • Volume % Change: 403%

From a technical perspective, La Jolla Pharmaceuticals (LJPC) exploded higher here right off its 20-day at $28.34 and broke out above a number of near-term resistance levels with monster upside volume flows. This high-volume rip to the upside is pushing this stock within range of triggering another near-term breakout trade.

Traders should look for long-biased trades in La Jolla Pharmaceuticals as long as it's trending above $33 or $32 and then once it clears Thursday's intraday high of $35.93 to $37 with volume that hits near or above 902,555 shares. If that breakout hits soon, then this stock will set up to re-test or possibly take out its next key resistance levels at its 52-week high of $39.28 to $45 a share.

Read More Trending Articles:

Jim Cramer and Real Money columnists discuss the latest from President Donald Trump and the GOP efforts to repeal and replace the Affordable Care Act. See which stocks they are discussing and get his insights or analysis with a free trial subscription to Real Money.

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

Nvidia Wipes Nearly $25 Billion From Its Market Cap After Earnings Day Disaster

Nvidia Wipes Nearly $25 Billion From Its Market Cap After Earnings Day Disaster

Facebook Stock Slides Another 3% as Woes Continue

Facebook Stock Slides Another 3% as Woes Continue

Chart of the Day: How Jerome Powell Could Shift the Semiconductor Landscape

Chart of the Day: How Jerome Powell Could Shift the Semiconductor Landscape

Flashback Friday: Nvidia Is the Ultimate Chip and Dip

Flashback Friday: Nvidia Is the Ultimate Chip and Dip

Dow Ends Higher on Dovish Trump Tariff Comments; Nasdaq Falls

Dow Ends Higher on Dovish Trump Tariff Comments; Nasdaq Falls