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.
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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.
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With that in mind, let's take a look at several stocks rising on unusual volume today.
St. Jude Medical
St. Jude Medical (STJ) develops, manufactures and distributes cardiovascular medical devices. This stock closed up 1.8% at $55.56 in Wednesday's trading session.
Wednesday's Volume: 5.48 million
Three-Month Average Volume: 1.65 million
Volume % Change: 203%
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From a technical perspective, STJ trended modestly higher here with heavy upside volume. This stock has been uptrending strong for the last six months, with shares soaring higher from its low of $39.90 to its recent high of $57.17. During that uptrend, shares of STJ have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of STJ within range of triggering a near-term breakout trade. That trade will hit if STJ manages to take out Wednesday's high of $56.21 and then once it clears its 52-week high at $57.17 with high volume.
Traders should now look for long-biased trades in STJ as long as it's trending above support at $54 or above its 50-day at $52.69 and then once it sustains a move or close above those breakout levels with volume that's near or above 1.65 million shares. If that breakout hits soon, then STJ will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $60 to $65.
Hewlett-Packard
Hewlett-Packard (HPQ) is a provider of products, technologies, software, solutions and services to individual consumers, small-and medium-sized businesses and large enterprises, including customers in the government, health and education sectors. This stock closed up 8.9% at $22.60 in Wednesday's trading session.
Wednesday's Volume: 55.89 million
Three-Month Average Volume: 15.19 million
Volume % Change: 271%
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From a technical perspective, HPQ skyrocketed higher here back above its 200-day moving average of $21.43 with monster upside volume. This move is quickly pushing shares of HPQ within range of triggering a big breakout trade. That trade will hit if HPQ manages to take out its 50-day moving average at $23.19 and then once it clears its gap down day high from August at $23.24 with high volume.
Traders should now look for long-biased trades in HPQ as long as it's trending above its 200-day at $21.43 and then once it sustains a move or close above those breakout levels with volume that hits near or above 15.19 million shares. If that breakout hits soon, then HPQ will set up to re-fill some of its previous gap down zone that started at $26.
Hi-Crush Partners
Hi-Crush Partners (HCLP) is a domestic producer of monocrystalline sand, a specialized mineral that is used as a proppant to enhance the recovery rates of hydrocarbons from oil and natural gas wells. This stock closed up 4% at $27.25 in Wednesday's trading session.
Wednesday's Volume: 201,000
Three-Month Average Volume: 131,103
Volume % Change: 95%
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From a technical perspective, HCLP spiked higher here right off some near-term support at $26 with above-average volume. This stock has been uptrending strong for the last six months, with shares soaring higher from its low of $17.08 to its recent high of $27.44. During that uptrend, shares of HCLP have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of HCLP within range of triggering a near-term breakout trade. That trade will hit if HCLP manages to take out its all-time high at $27.44 with high volume.
Traders should now look for long-biased trades in HCLP as long as it's trending above support at $26 or at $25.07 and then once it sustains a move or close above $27.44 with volume that's near or above 131,103 shares. If that breakout hits soon, then HCLP will set up to enter new all-time high territory, which is bullish technical price action. Some possible upside targets off that breakout are $32 to $35.
RPM International
RPM International (RPM) markets and sells various specialty chemical product lines, including specialty paints, protective coatings, roofing systems, sealants and adhesives. This stock closed up 2.5% at $36.63 in Wednesday's trading session.
Wednesday's Volume: 1.61 million
Three-Month Average Volume: 455,862
Volume % Change: 261%
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From a technical perspective, RPM spiked higher here right above its 50-day moving average of $35.54 with strong upside volume. This stock has been uptrending strong for the last six months, with shares soaring higher from its low of $29.29 to its recent high of $37.57. During that move, shares of RPM have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of RPM within range of triggering a near-term breakout trade. That trade will hit if RPM manages to take out its 52-week high at $37.57 with high volume.
Traders should now look for long-biased trades in RPM as long as it's trending above its 50-day at $35.54 and then once it sustains a move or close above $37.57 with volume that's near or above 455,862 shares. If that breakout hits soon, then RPM will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are $40 to $42.
Yandex
Yandex (YNDX) is an Internet company in Russia. This stock closed up 1.7% at $36.16 in Wednesday's trading session.
Wednesday's Volume: 3.99 million
Three-Month Average Volume: 2.52 million
Volume % Change: 76%
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From a technical perspective, YNDX bounced modestly higher here right off its 50-day moving average of $34.58 with strong upside volume. This stock has been uptrending big for the last six months, with shares soaring higher from its low of $19.93 to its recent high of $39.44. During that uptrend, shares of YNDX have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of YNDX within range of triggering a major breakout trade. That trade will hit if YNDX manages to take out Wednesday's high of $36.88 to $38 and then once it clears its 52-week high at $39.44 with high volume.
Traders should now look for long-biased trades in YNDX as long as it's trending above some key near-term support at $34.31 and then once it sustains a move or close above those breakout levels with volume that's near or above 2.52 million shares. If that breakout hits soon, then YNDX will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are $45 to $50.
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.
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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.
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