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.
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 today.
B/E Aerospace
B/E Aerospace (BEAV) is a manufacturer of cabin interior products for commercial aircraft and business jets and a distributor of aerospace fasteners and consumables. This stock closed up 1.4% at $72.24 in Wednesday's trading session.
Wednesday's Volume: 1.37 million
Three-Month Average Volume: 834,650
Volume % Change: 70%
From a technical perspective, BEAV bounced higher here right above some near-term support at $70 and into new 52-week-high territory with strong upside volume. This stock has been uptrending strong for the last six months, with shares moving higher from its low of $51.53 to its intraday high of $72.79. During that move, shares of BEAV have been making mostly higher lows and higher highs, which is bullish technical price action.
Traders should now look for long-biased trades in BEAV as long as it's trending above support at $70 or above more support at $68.15 and then once it sustains a move or close above Wednesday's high of $72.79 with volume that hits near or above 834,650 shares. If we get that move soon, then BEAV will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $75 to $80.
Arcos Dorados
Arcos Dorados (ARCO) operates and franchises McDonald's restaurants in Latin America. This stock closed up 7.7% to $13.33 in Wednesday's trading session.
Wednesday's Volume: 3.81 million
Three-Month Average Volume: 856,761
Volume % Change: 333%
From a technical perspective, ARCO soared higher here back above both its 50-day moving average at $12.31 and its 200-day moving average at $12.86 with heavy upside volume. This move has now taken shares of ARCO out of its downtrend and the stock closed strong near the highs of the day. Shares of ARCO are now moving within range of triggering a near-term breakout trade. That trade will hit if ARCO manages to take out its intraday high of $13.42 and then once it clears more resistance at $14.35 with high volume.
Traders should now look for long-biased trades in ARCO as long as it's trending above its 200-day at $12.86 or its 50-day at $12.31 and then once it sustains a move or close above those breakout levels with volume that hits near or above 856,761 shares. If that breakout triggers soon, then ARCO will set up to re-test or possibly take out its next major overhead resistance levels at $15.52 to its 52-week high at $16. Any high-volume move above those levels will then give ARCO a chance to tag $18 to $19.
AerCap
AerCap (AER) provides aircraft leasing and aviation finance services. This stock closed up 3.3% at $18 in Wednesday's trading session.
Wednesday's Volume: 740,000
Three-Month Average Volume: 318,589
Volume % Change: 85%
From a technical perspective, AER jumped higher here right above its 50-day moving average of $17.27 with above-average volume. This stock has been uptrending strong for the last five months, with shares moving higher from its low of $14.84 to its recent high of $18.16. During that uptrend, shares of AER have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of AER within range of triggering a near-term breakout trade. That trade will hit if AER manages to take out its 52-week high at $18.16 with high volume.
Traders should now look for long-biased trades in AER as long as it's trending above its 50-day at $17.27 or above more near-term support at $17.17 and then once it sustains a move or close above its 52-week high at $18.16 with volume that's near or above 318,589 shares. If that breakout hits soon, then AER will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $20 to $23.
HHGregg
HHGregg (HGG) is a specialty retailer of consumer electronics, home appliances and related services operating under the name hhgregg. This stock closed up 2.5% at $17.25 in Wednesday's trading session.
Wednesday's Volume: 472,000
Three-Month Average Volume: 314,280
Volume % Change: 80%
From a technical perspective, HGG bounced higher here right above its 50-day moving average of $15.93 with above-average volume. This move started to push shares of HGG into breakout territory, since it took out some near-tem overhead resistance at $17.24. Shares of HGG are now starting to move within range of triggering another big breakout trade. That trade will hit if HGG manages to clear its 52-week high at $17.71 with high volume.
Traders should now look for long-biased trades in HGG as long as it's trending above its 50-day at $15.93 and then once it sustains a move or close above its 52-week high at $17.71 with volume that's near or above 314,280 shares. If that breakout hits soon, then HGG will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $22 to $25.
Swift Transportation
Swift Transportation (SWFT) is a multi-faceted transportation services company and the truckload carrier in North America. This stock closed up 2.9% at $18.03 in Wednesday's trading session.
Wednesday's Volume: 2.93 million
Three-Month Average Volume: 1.33 million
Volume % Change: 195%
From a technical perspective, SWFT trended higher here with strong upside volume. This stock has been uptrending strong for the last month and change, with shares moving higher from its low of $14.52 to its recent high of $18.44. During that move, shares of SWFT have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of SWFT within range of triggering a major breakout trade. That trade will hit if SWFT manages to take out its all-time high at $18.44 with high volume.
Traders should now look for long-biased trades in SWFT as long as it's trending above its 50-day at $16.81 and then once it sustains a move or close above its all-time high at $18.44 with volume that's near or above 1.33 million shares. If that breakout hits soon, then SWFT will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $20 to $25.
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.
No comments:
Post a Comment