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.
With that in mind, let's take a look at several stocks rising on unusual volume recently.
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Under Armour
Under Armour (UA), together with its subsidiaries, develops, markets and distributes branded performance apparel, footwear, and accessories for men, women and youth primarily in North America, Europe, the Middle East, Africa, Asia and Latin America. This stock closed up 3.3% to $69.82 in Friday's trading session.
Friday's Volume: 4.50 million
Three-Month Average Volume: 2.43 million
Volume % Change: 79%
From a technical perspective, UA gapped up notably higher here back above its 50-day moving average of $68.49 with above-average volume. This trend to the upside on Friday also briefly pushed shares of UA into breakout territory, since the stock flirted with some near-term overhead resistance at $70.16. Market players should now look for a continuation trend higher in the short-term if UA manages to take out Friday's intraday high of $70.57 with strong volume.
Traders should now look for long-biased trades in UA as long as it's trending above its 50-day moving average of $68.49 and then once it sustains a move or close above $70.57 with volume that hits near or above 2.43 million shares. If that move gets underway soon, then UA will set up to re-test or possibly take out its 52-week high at $73.42. Any high-volume move above that level will then give UA a chance to make a run at $80.
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Micron Technology
Micron Technology (MU), together with its subsidiaries, manufactures and markets semiconductor solutions worldwide. This stock closed up 6.7% at $33.83 in Friday's trading session.
Friday's Volume: 53.97 million
Three-Month Average Volume: 24.24 million
Volume % Change: 137%
From a technical perspective, MU gapped up sharply higher here with strong upside volume flows. This large spike to the upside on Friday also pushed shares of MU into breakout territory, since this stock took out some key near-term overhead resistance levels at $32.55 to $33.41 and at $33.70. Shares of MU are now quickly moving within range of triggering another big breakout trade. That trade will hit if MU manages to clear some more key overhead resistance levels at $34.28 to its 52-week high at $34.85 with high volume.
Traders should now look for long-biased trades in MU as long as it's trending above Friday's intraday low of $33.41 and then once it sustains a move or close above those breakout levels with volume that this near or above 24.24 million shares. If that breakout develops soon, then MU will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $38 to $40.
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BlackBerry
BlackBerry (BBRY) provides wireless communications solutions worldwide. This stock closed up 4.6% at $10.26 in Friday's trading session.
Friday's Volume: 63.29 million
Three-Month Average Volume: 14.77 million
Volume % Change: 320%
From a technical perspective, BBRY ripped sharply higher here right above some near-term support at $9.50 and back above its 50-day moving average of $10.08 with monster upside volume flows. This sharp move to the upside on Friday is now quickly pushing shares of BBRY within range of triggering a big breakout trade. That trade will hit if BBRY manages to take out some near-term overhead resistance levels at $11 to $11.17 and then above its 52-week high at $11.65 with high volume.
Traders should now look for long-biased trades in BBRY as long as it's trending above Friday's intraday low of $9.66 and then once it sustains a move or close above those breakout levels with volume that hits near or above 14.77 million shares. If that breakout triggers soon, then BBRY will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $12.18 to $14.
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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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