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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Green Plains
Green Plains (GPRE) produces, markets and distributes ethanol in the U.S. This stock closed up 7% at $34.49 in Wednesday's trading session.
Wednesday's Volume: 2.39 million
Three-Month Average Volume: 1.45 million
Volume % Change: 61%
From a technical perspective, GPRE gapped sharply higher here and broke out above some near-term overhead resistance at $33.36 with above-average volume. This move is coming after shares of GPRE have recently formed a V-bottom chart pattern, after the stock hit a recent low of $25.92. Since forming that V-bottom, shares of GPRE have now started to uptrend and move back above its 200-day moving average. Market players should now look for a continuation move to the upside in the short-term if GPRE manages to take out Wednesday's intraday high of $36.19 to its 50-day moving average of $37.43 with high volume.
Traders should now look for long-biased trades in GPRE as long as it's trending above Wednesday's intraday low of $32.99 or above its 200-day at $31.90 and then once it sustains a move or close above $36.19 to $37.43 with volume that this near or above 1.45 million shares. If that move gets started soon, then GPRE will set up to re-test or possibly take out its next major overhead resistance levels at $39.26 to around $42, or even $44.
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Williams Companies
Williams Companies (WMB) operates as an energy infrastructure company. This stock closed up 3% at $55.70 in Wednesday's trading session.
Wednesday's Volume: 11.54 million
Three-Month Average Volume: 6.49 million
Volume % Change: 72%
From a technical perspective, WMB gapped notably higher here back above its 50-day moving average of $55.34 with above-average volume. This spike to the upside on Wednesday also pushed shares of WMB into breakout territory, since the stock took out some near-term overhead resistance at $55.19. Shares of WMB are now starting to trend within range of triggering another near-term breakout trade. That trade will hit if WMB manages to clear some key near-term overhead resistance levels at $56 to $56.92 with high volume.
Traders should now look for long-biased trades in WMB as long as it's trending above Wednesday's intraday low of $54.68 or above $54 and then once it sustains a move or close above those breakout levels with volume that hits near or above 6.49 million shares. If that breakout develops soon, then WMB will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $59.77. Any high-volume move above $59.77 will then give WMB a chance to trend north of $60.
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IPG Photonics
IPG Photonics (IPGP) develops and manufactures fiber lasers, fiber amplifiers and diode lasers that are used in various applications, primarily in materials processing. This stock closed up 1.2% at $70.28 in Wednesday's trading session.
Wednesday's Volume: 1.09 million
Three-Month Average Volume: 352,931
Volume % Change: 250%
From a technical perspective, IPGP spiked modestly higher here with strong upside volume flows. This stock has been uptrending over the last few weeks, with shares moving higher from its low of $60.75 to its intraday high of $71.75. During that uptrend, shares of IPGP have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of IPGP within range of triggering a major breakout trade. That trade will hit if IPGP manages to take out some key overhead resistance levels at $72.15 to $73.29 with high volume.
Traders should now look for long-biased trades in IPGP as long as it's trending above its 50-day moving average of $67.58 and then once it sustains a move or close above those breakout levels with volume that's near or above 352,931 shares. If that breakout develops soon, then IPGP will set up to re-test or possibly take out its next major overhead resistance levels at $75.73 to $75.75, or even its 52-week high at $79.
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Zeltiq Aesthetics
Zeltiq Aesthetics (ZLTQ), a medical technology company, is engaged in developing and commercializing non-invasive products for the selective reduction of fat. This stock closed up 6.5% at $25.92 in Wednesday's trading session.
Wednesday's Volume: 2.49 million
Three-Month Average Volume: 733,498
Volume % Change: 278%
From a technical perspective, ZLTQ ripped sharply higher here right above its 50-day moving average of $22.78 with strong upside volume flows. This sharp spike to the upside on Wednesday is quickly pushing shares of ZLTQ within range of triggering a big breakout trade. That trade will hit if ZLTQ manages to take out Wednesday's intraday high of $26.52 to its 52-week high at $27.04 with high volume.
Traders should now look for long-biased trades in ZLTQ as long as it's trending above Wednesday's intraday low of $23.81 or above its 50-day at $22.78 and then once it sustains a move or close above those breakout levels with volume that's near or above 733,498 shares. If that breakout materializes soon, then ZLTQ will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $30 to $35.
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OM Group
OM Group (OMG) operates as a technology-driven industrial company worldwide. This stock closed up 7.6% at $25.05 in Wednesday's trading session.
Wednesday's Volume: 373,000
Three-Month Average Volume: 248,528
Volume % Change: 50%
From a technical perspective, OMG exploded sharply higher here with above-average volume. This strong move to the upside on Wednesday also pushed shares of OMG into breakout territory, since the stock took out some near-term overhead resistance at $23.62. Market players should now look for a continuation move to the upside in the short-term if OMG manages to take out Wednesday's intraday high of $25.15 to its 50-day moving average of $25.69 with high volume.
Traders should now look for long-biased trades in OMG as long as it's trending above $23.62 or above Wednesday's intraday low of $23.34 and then once it sustains a move or close above $25.15 to $25.69 with volume that's near or above 248,528 shares. If that move gets set off soon, then OMG will set up to re-test or possibly take out its next major overhead resistance levels at $27 to $28.60, or even its 200-day moving average of $29.68.
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To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.
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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.