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.
JA Solar
JA Solar (JASO) designs, manufactures and markets high-performance solar cells made from specially processed silicon wafers. This stock closed up 2.9% at $10.17 in Monday's trading session.
Monday's Volume: 5.84 million
Three-Month Average Volume: 2.29 million
Volume % Change: 175%
From a technical perspective, JASO trended higher here and broke out above some near-term overhead resistance levels at $9.88 to $9.91 with above-average volume. This stock has been uptrending strong for the last month, with shares soaring higher from its low of $7 to its intraday high of $10.64. During that uptrend, shares of JASO have been consistently making higher lows and higher highs, which is bullish technical price action.
Traders should now look for long-biased trades in JASO as long as it's trending above Monday's low of $9.41 or above its 50-day at $8.59 and then once it sustains a move or close above Monday's high of $10.64 with volume that's near or above 2.29 million shares. If we get that move soon, then JASO will set up to re-test or possibly take out its 52-week high at $11.40. Any high-volume move above $11.40 will then put its next major overhead resistance levels at $11.70 to $12.85 into range for shares of JASO.
Changeyou.com
Changeyou.com (CYOU) is an online game developer and operator in China. This stock closed up 2.1% at $35.50 in Monday's trading session.
Monday's Volume: 350,000
Three-Month Average Volume: 234,420
Volume % Change: 95%
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From a technical perspective, CYOU jumped higher here right above some near-term support at $33 with above-average volume. This stock has been uptrending strong for the last month, with shares soaring higher from its low of $27.72 to its recent high of $36.67. During that uptrend, shares of CYOU have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of CYOU within range of triggering a near-term breakout trade. That trade will hit if CYOU manages to take out some near-term overhead resistance levels at Monday's high of $36.31 to more resistance at $36.67 with high volume.
Traders should now look for long-biased trades in CYOU as long as it's trending above Monday's low of $34 or above more support at $33 and then once it sustains a move or close above those breakout levels with volume that's near or above 234,420 shares. If that breakout hits soon, then CYOU will set up to re-fill some of its previous gap down zone from July that started at its 52-week high of $41.60.
Textura
Textura (TXTR) provides on-demand business collaboration software solutions to the commercial construction industry. This stock closed up 3.4% to $43.08 in Monday's trading session.
Monday's Volume: 605,000
Three-Month Average Volume: 122,320
Volume % Change: 262%
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From a technical perspective, TXTR spiked higher here right above some near-term support at $39.92 with strong upside volume. This stock has been uptrending strong for the last four months, with shares moving higher from $20 to its recent high of $44.17. During that uptrend, shares of TXTR have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of TXTR within range of triggering a major breakout trade. That trade will hit if TXTR manages take out Monday's high of $43.82 and then its all-time high of $44.17 with high volume.
Traders should now look for long-biased trades in TXTR as long as it's trending above Monday's low of $41.17 or above key support at $39.92 and then once it sustains a move or close above those breakout levels with volume that hits near or above 122,320 shares. If that breakout hits soon, then TXTR will set up to enter new all-time high territory, which is bullish technical price action. Some possible upside targets off that breakout are $50 to $55.
SouFun
SouFun (SFUN) operates a real estate Internet portal in China. This stock closed up 4.3% to $51.64 in Monday's trading session.
Monday's Volume: 2.60 million
Three-Month Average Volume: 864,862
Volume % Change: 277%
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From a technical perspective, SFUN ripped higher here right above some near-term support at $47.50 with strong upside volume. This move pushed shares of SFUN into breakout territory, since the stock took out some near-term overhead resistance at $50.83. Shares of SFUN are now quickly moving within range of triggering another big breakout trade. That trade will hit if SFUN manages to take out Monday's high of $52.45 and then its 52-week high at $53.77 with high volume.
Traders should now look for long-biased trades in SFUN as long as it's trending above some key near-term support levels at $47.50 or at $44.71 and then once it sustains a move or close above those breakout levels with volume that hits near or above 864,862 shares. If that breakout hits soon, then SFUN 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 $62.
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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