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.
SurModics
SurModics (SRDX) is a provider of drug delivery and surface modification technologies to the healthcare industry. This stock closed up 6.8% at $24.19 in Wednesday's trading session.
Wednesday's Volume: 263,000
Three-Month Average Volume: 71,045
Volume % Change: 287%
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From a technical perspective, SRDX soared higher here back above its 200-day moving average of $23.59 with above-average volume. This stock has been uptrending for the last few weeks, with shares moving higher from its low of $19.73 to its intraday high of $24.95. During that move, shares of SRDX have been consistently making higher lows and higher highs, which is bullish technical price action.
Traders should now look for long-biased trades in SRDX as long as it's trending above its 200-day at $23.59 or above more support at $22 and then once it sustains a move or close above Wednesday's high of $24.95 with volume that hits near or above 71,045 shares. If we get that move soon, then SRDX will set up to re-test or possibly take out its next major overhead resistance levels at $27 to its 52-week high at $27.98.
New Oriental Education & Technology Group
New Oriental Education & Technology Group (EDU) is a provider of private educational services in China. This stock closed up 4.7% at $24.64 in Wednesday's trading session.
Wednesday's Volume: 2.98 million
Three-Month Average Volume: 1.14 million
Volume % Change: 163%
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From a technical perspective, EDU ripped sharply higher here right above some near-term support at $23.06 with above-average volume. This move pushed shares of EDU into breakout and new 52-week-high territory, since the stock took out some near-term overhead resistance at $24.50.
Traders should now look for long-biased trades in EDU as long as it's trending above $23 or above its 50-day at $22.40 and then once it sustains a move or close above Wednesday's high $24.74 with volume that's near or above 1.14 million shares. If we get that move soon, then EDU will set up to re-test or possibly take out its next major overhead resistance levels at $28 to $30.
Home Inns & Hotels Management
Home Inns & Hotels Management (HMIN) develops, leases, operates, franchises and manages economy hotels in China. This stock closed up 4.8% at $34.07 in Wednesday's trading session.
Wednesday's Volume: 731,000
Three-Month Average Volume: 218,547
Volume % Change: 207%
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From a technical perspective, HMIN spiked sharply higher here right above some near-term support at $32.19 and above its 50-day moving average at $31.50 with above-average volume. This stock recently pulled back from its 52-week high at $36.74 to right above its 50-day at $31.50. This bounce right above its 50-day is now pushing shares of HMIN within range of triggering a near-term breakout trade. That trade will hit if HMIN manages to take out some near-term overhead resistance at $34.83 with high volume.
Traders should now look for long-biased trades in HMIN as long as it's trending above $32 or its 50-day at $31.50 and then once it sustains a move or close above $34.83 with volume that's near or above 218,547 shares. If we get that move soon, then HMIN will set up to re-test or possibly take out its 52-week high at $36.74. Any high-volume move above that level will then give HMIN a chance to tag its next major overhead resistance levels at $40 to $42.
Wolverine World Wide
Wolverine World Wide (WWW) designs, manufactures and markets quality casual footwear and apparel, performance outdoor and athletic footwear and apparel, children's footwear, industrial work boots and apparel and uniform shoes and boots. This stock closed up 1.3% at $57.09 in Wednesday's trading session.
Wednesday's Volume: 570,000
Three-Month Average Volume: 404,058
Volume % Change: 65%
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From a technical perspective, WWW spiked modestly higher here back above its 50-day moving average of $56.97 with above-average volume. This stock recently formed a double bottom at $55.33 to $55.07. Following that bottom, shares of WWW have now started to uptrend a bit and move within range of triggering a near-term breakout trade. That trade will hit if WWW manages to take out some near-term overhead resistance levels at $58 to $58.31 with high volume.
Traders should now look for long-biased trades in WWW as long as it's trending above $56 or above $55.07 and then once it sustains a move or close above those breakout levels with volume that's near or above 404,058 shares. If we get that move soon, then WWW will set up to re-test or possibly take out its 52-week high at $60.35. Any high-volume move above that level will then give WWW a chance to tag $65.
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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