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.
TearLab
TearLab (TEAR) is an in-vitro diagnostic company. This stock closed up 8.5% at $11.48 in Friday's trading session.
Friday's Volume: 1.26 million
Three-Month Average Volume: 562,768
Volume % Change: 165%
From a technical perspective, TEAR ripped sharply higher here right above its 200-day moving average of $9.77 with strong upside volume. This move is quickly pushing shares of TEAR within range of triggering a big breakout trade above a key downtrend line that dates back to late July. That breakout will hit if TEAR manages to take out Friday's high of $11.50 and then once it clears more near-term overhead resistance at $12.39 with high volume.
Traders should now look for long-biased trades in TEAR as long as it's trending above Friday's low of $10.22 or above its 200-day at $9.77 and then once it sustains a move or close above those breakout levels with volume that hits near or above 562,768 shares. If that breakout hits soon, then TEAR will set up to re-test or possibly take out its next major overhead resistance levels at $13.80 to its 52-week high at $15.18.
Constellium
Constellium (CSTM) designs and manufacture rolled and extruded aluminium products, primarily for to aerospace, automotive and packaging markets. This stock closed up 9.4% to $18.85 in Friday's trading session.
Friday's Volume: 5.79 million
Three-Month Average Volume: 294,603
Volume % Change: 2694%
From a technical perspective, CSTM spiked sharply higher here back above its 50-day moving average of $18.81 with monster upside volume. This move is quickly pushing shares of CSTM within range of triggering a major breakout trade. That trade will hit if CSTM manages to take out some near-term overhead resistance levels at $19.51 to $19.68, and then once it takes out more resistance at $20.53 to its all-time high at $20.67 with high volume.
Traders should now look for long-biased trades in CSTM as long as it's trending above Friday's low of $17.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 294,603 shares. If we get that move soon, then CSTM will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $25 to $27.
Penn National Gaming
Penn National Gaming (PENN) is a diversified, multi-jurisdictional owner and manager of gaming and pari-mutuel properties. This stock closed up 6.5% at $13.68 in Friday's trading session.
Friday's Volume: 4.24 million
Three-Month Average Volume: 3.77 million
Volume % Change: 260%
From a technical perspective, PENN jumped higher here right off its 50-day moving average of $12.77 with heavy upside volume. This stock has been uptrending strong for the last three months, with shares soaring higher from its low of $11 to its recent high of $13.88. During that uptrend, shares of PENN have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of PENN within range of triggering a near-term breakout trade. That trade will hit if PENN manages to take out Friday's high of $13.74 to its 52-week high at $13.88 with high volume.
Traders should now look for long-biased trades in PENN as long as it's trending above its 50-day at $12.77 or its 200-day at $12.28 and then once it sustains a move or close above those breakout levels with volume that's near or above 3.77 million shares. If that breakout hits soon, then PENN will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $18 to $20.
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Shutterstock
Shutterstock (SSTK) operates marketplace for commercial digital imagery. This stock closed up 8.5% at $72.39 in Friday's trading session.
Friday's Volume: 566,000
Three-Month Average Volume: 231,198
Volume % Change: 95%
From a technical perspective, SSTK ripped sharply higher here back above its 50-day moving average of $66.95 with above-average volume. This stock has been trending sideways for the last month and change, with shares moving between $64.01 on the downside and $76.12 on the upside. This spike on Friday is quickly pushing shares of SSTK within range of triggering a major breakout trade above the upper-end of its recent sideways trading chart pattern. That breakout will hit if SSTK manages to take out Friday's high of $73.82 to $75.72, and then once it takes out more resistance at $76.07 to its all-time high at $76.12 with high volume.
Traders should now look for long-biased trades in SSTK as long as it's trending above its 50-day at $66.95 and then once it sustains a move or close above those breakout levels with volume that's near or above 231,198 shares. If that breakout hits soon, then SSTK will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $80 to $85.
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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