DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds dont 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."
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.
Texura (TXTR)
This company provides on-demand business collaboration software solutions to the commercial construction industry. This stock closed up 1.7% to $30.06 in Monday's trading session.
Monday's Volume: 1.78 million
Three-Month Average Volume: 427,662
Volume % Change: 393%
From a technical perspective, TXTR spiked modestly higher here right above its recent low of $28.50 with heavy upside volume. This stock has been downtrending over the last few weeks, with shares falling from its high of $41.50 to its low of $28.50. During that downtrend, shares of TXTR have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of TXTR are now coming off that low of $28.50 with volume. That move is quickly pushing shares of TXTR within range of triggering a near-term breakout trade.
That trade will hit if TXTR manages to take out Monday's high of $30.37 to some near-term overhead resistance at $31 with high volume. Traders should now look for long-biased trades in TXTR as long as it's trending above that recent low of $28.50, and then once it sustains a move or close above those breakout levels with volume that hits near or above 427,662 shares. If that breakout hits soon, then TXTR will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $36.63.
Cooper Tire & Rubber (CTB)
This company produces and markets passenger, light truck, medium truck, motorsport and motorcycle tires which are sold nationally and internationally in the replacement tire market. This stock closed up 5.4% to $24.20 in Monday's trading session.
Monday's Volume: 6.54 million
Three-Month Average Volume: 1.85 million
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Volume % Change: 289%
From a technical perspective, CTB spiked sharply higher here back above its 50-day moving average of $24.03 with heavy upside volume. This move is quickly pushing shares of CTB within range of triggering a near-term breakout trade. That trade will hit if CTB manages to take out Monday's high of $24.44 to some near-term overhead resistance at $24.83 with high volume.
Traders should now look for long-biased trades in CTB as long as it's trending above $23 or Monday's low of $22.08, and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.85 million shares.
If that breakout hits soon, then CTB will set up to re-test or possibly take out its next major overhead resistance levels at $27.37 to its 200-day at $27.70. Any high-volume move above those levels will then give CTB a chance to re-fill its previous gap zone from October that started near $31.
CVD Equipment (CVV)
This company designs, develops & manufactures customized state-of-the-art equipment and process solutions used to develop & manufacture solar, nano & advanced electronic components, materials & coatings for research & industrial applications. This stock closed up 6.3% at $14.61 in Monday's trading session.
Monday's Volume: 181,000
Three-Month Average Volume: 46,265
Volume % Change: 154%
From a technical perspective, CVV ripped sharply higher here and broke out above some near-term overhead resistance at $14.14 with above-average volume. This move is quickly pushing shares of CVV within range of triggering another big breakout trade. That trade will hit if CVV manages to take out Monday's high of $14.76 to its 52-week high at $14.80 with high volume.
Traders should now look for long-biased trades in CVV as long as it's trending above Monday's low of $13.68 or above $13, and then once it sustains a move or close above those breakout levels with volume that hits near or above 46,265 shares. If that breakout triggers soon, then CVV will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are its next major overhead resistance levels at $16.06 to $17.95. Any high-volume move above those levels will then give CVV a chance to tag $20.
CONMED (CNMD)
This is a medical technology company with an emphasis on surgical devices and equipment for minimally invasive procedures and monitoring. This stock closed up 1.4% to $42.48 in Monday's trading session.
Monday's Volume: 284,000
Three-Month Average Volume: 110,694
Volume % Change: 138%
From a technical perspective, CNMD spiked modestly higher here right above some near-term support at $41.62 with above-average volume. This stock has been uptrending strong for the last four months, with shares soaring higher from its low of $30.56 to its recent high of $45.57. During that uptrend, shares of CNMD have been consistently making higher lows and higher highs, which is bullish technical price action.
Traders should now look for long-biased trades in CNMD as long as it's trending above some near-term support at $41.62 or above more support at $39, and then once it sustains a move or close above Monday's high of $42.50 with volume that hits near or above 110,694 shares. If we get that move soon, then CNMD will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $45.57. Any high-volume move above $45.57 will then give CNMD a chance to tag $50.
Fuel Systems Solutions (FSYS)
This company designs, manufactures and supplies alternative fuel components and systems for transportation and industrial applications. This stock closed up 3.9% at $13.46 in Monday's trading session.
Monday's Volume: 476,000
Three-Month Average Volume: 178,754
Volume % Change: 137%
From a technical perspective, FSYS spiked notably higher here with above-average volume. This stock recently formed a double bottom chart pattern, after shares found buying interest at $12.25 to $12.26. Following that bottom, shares of FSYS have now started to uptrend and move within range of triggering a big breakout trade.
That trade will hit if FSYS can manage to take out some near-term overhead resistance levels at $13.90 to $14.01, and then once it clears its 50-day moving average at $14.54 with high volume. Traders should now look for long-biased trades in FSYS as long as it's trending above Monday's low of $12.81 or above more support at $12.25, and then once it sustains a move or close above those breakout levels with volume that this near or above 178,754 shares. If that breakout hits soon, then FSYS will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $16.82 to $18, or
even $19.
-- Written by Roberto Pedone in Delafield, Wis.
RELATED LINKS: >>5 Stocks Breaking Out on Big Volume >>5 Dividend Stocks Ready to Pay You More in 2014 >>5 Big Trades for Post-Taper Gains
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