DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't 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.
>>5 Stocks Poised for Breakouts
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.
>>5 Huge Stocks to Trade for Huge Gains
With that in mind, let's take a look at several stocks rising on unusual volume recently.
Agios Pharmaceuticals
Agios Pharmaceuticals (AGIO), a biopharmaceutical company, focuses on the development and commercialization of therapeutics in the field of cancer metabolism and inborn errors of metabolism in the U.S. This stock closed up 5.9% at $47.50 in Friday's trading session.
Friday's Volume: 566,000
Three-Month Average Volume: 409,914
Volume % Change: 50%
From a technical perspective, AGIO spiked sharply higher here right above some near-term support at $42.50 with above-average volume. This move pushed shares of AGIO into breakout territory, since the stock took out some near-term overhead resistance at $47.47. Shares of AGIO are now quickly moving within range of triggering another major breakout trade. That trade will hit if AGIO manages to take out some key overhead resistance levels $48.94 to $48.98 and then once it clears its all-time high at $49.79 with high volume.
Traders should now look for long-biased trades in AGIO as long as it's trending above some near-term support at $42.50 and then once it sustains a move or close above those breakout levels with volume that this near or above 409,914 shares. If that breakout gets underway soon, then AGIO will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $55 to $60.
Myriad Genetics
Myriad Genetics (MYGN), a molecular diagnostic company, focuses on the development and marketing of predictive medicine, personalized medicine and prognostic medicine tests primarily in the U.S. This stock closed up 3.4% at $35.02 in Friday's trading session.
Friday's Volume: 2.27 million
Three-Month Average Volume: 1.67 million
Volume % Change: 50%
From a technical perspective, MYGN spiked notably higher here right above some near-term support at $33.40 with above-average volume. This spike higher on Friday is quickly pushing shares of MYGN within range of triggering a near-term breakout trade. That trade will hit if MYGN manages to take out some key overhead resistance levels at $36.06 to its 50-day moving average of $37.16 and then once it clears more resistance at $38.32 with high volume.
Traders should now look for long-biased trades in MYGN as long as it's trending above some near-term support levels at $33.40 or at $33.25 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.67 million shares. If that breakout starts soon, then MYGN will set up to re-test or possibly take out its next major overhead resistance levels at $42 to its 52-week high of $42.50.
AMAG Pharmaceuticals
AMAG Pharmaceuticals (AMAG), develops and commercializes specialty pharmaceutical products. This stock closed up 7.2% at $19.31 in Friday's trading session.
Friday's Volume: 603,000
Three-Month Average Volume: 443,202
Volume % Change: 50%
From a technical perspective, AMAG soared higher here right off its 50-day moving average of $18.09 with above-average volume. This move pushed shares of AMAG into breakout territory, since the stock took out some key near-term overhead resistance levels at $18.79 to $19.08. Market players should now look for a continuation move higher in the short-term if AMAG manages to clear Friday's intraday high of $19.31 with strong upside volume flows.
Traders should now look for long-biased trades in AMAG as long as it's trending above its 50-day at $18.09 or above more near-terms support at $17.50 and then once it sustains a move or close above $19.31 with volume that's near or above 443,202 shares. If that move gets started soon, then AMAG will set up to re-test or possibly take out its next major overhead resistance levels at $21.75 to $22.74, or even $23.
To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.
-- Written by Roberto Pedone in Delafield, Wis.
RELATED LINKS:
>>5 Stocks Under $10 Set to Soar Higher
>>5 Stocks Insiders Love Right Now
>>5 Health Care Stocks to Trade for Gains in June
Follow Stockpickr on Twitter and become a fan on Facebook.
At the time of publication, author had no positions in stocks mentioned.
Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including
CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.
No comments:
Post a Comment