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.
Advisory Board
Advisory Board (ABCO) provides best practices research and analysis, business intelligence and software tools, and management and advisory services to the health care and education industries. This stock closed up 4.3% at $63.80 in Monday's trading session.
Monday's Volume: 495,000
Three-Month Average Volume: 163,212
Volume % Change: 146%
From a technical perspective, ABCO spiked higher here back above its 50-day moving average of $63.18 with above-average volume. This move also pushed shares of ABCO into breakout territory, since the stock took out some near-term overhead resistance at $62.98. Market players should now look for a continuation move higher in the short-term if ABCO can manage to take out Monday's high of $64.53 with high volume.
Traders should now look for long-biased trades in ABCO as long as it's trending above $62 and then once it sustains a move or close above Monday's high of $64.53 with volume that hits near or above 163,212 shares. If we get that move soon, then ABCO will set up to re-test or possibly take out its next major overhead resistance levels at $66 to $70.
Bloomin' Brands
Bloomin' Brands (BLMN) operates as a casual dining restaurant company. This stock closed up 5.7% at $26.91 in Monday's trading session.
Monday's Volume: 1.81 million
Three-Month Average Volume: 618,520
Volume % Change: 162%
From a technical perspective, BLMN spiked sharply higher here and broke out into new all-time high territory with above-average volume. That breakout hit once BLMN took out some key overhead resistance levels at $26.21 to $26.71. Market players should now look for a continuation move higher in the short-term if BLMN can manage to make a new all-time with strong volume.
Traders should now look for long-biased trades in BLMN as long as it's trending above Monday's low of $25.85 or above more near-term support at $24.79 and then once it sustains a move or close above Monday's high of $26.95 with volume that hits near or above 618,520 shares. If we get that move soon, then BLMN will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that move are $30 to $33.
DaVita HealthCare Partners
DaVita HealthCare Partners (DVA) operates kidney dialysis centers and provides related lab services mainly in dialysis centers and in contracted hospitals across the U.S. This stock closed up 8.8% at $61.55 in Monday's trading session.
Monday's Volume: 9.41 million
Three-Month Average Volume: 1.62 million
Volume % Change: 428%
From a technical perspective, DVA ripped sharply higher here right off its 200-day moving average of $59.24 with heavy upside volume. This move also pushed shares of DVA into breakout territory, since the stock took out some key overhead resistance levels at $60.38 to $61.01. Market players should now look for a continuation move higher in the short-term if DVA can manage to clear Monday's high of $62.14 with strong volume.
Traders should now look for long-biased trades in DVA as long as it's trending above $60 and then once it sustains a move or close above Monday's intraday high of $62.14 with volume that's near or above 1.62 million shares. If we get that move soon, then DVA will set up to re-test or possibly take out its 52-week high at $65.67.
Autobytel
Autobytel (ABTL) is an automotive marketing services company that helps automotive retail dealers and automotive manufacturers market and sell new and used vehicles through its internet lead referral and online advertising programs. This stock closed up 7.4% at $11.75 in Monday's trading session.
Monday's Volume: 603,000
Three-Month Average Volume: 126,855
Volume % Change: 318%
From a technical perspective, ABTL soared higher here and broke out to a new 52-week high with heavy upside volume. This stock has been uptrending strong for the last five months, with shares ripping higher from its low of $4.56 to its intraday high of $12.25. During that uptrend, shares of ABTL have been consistently making higher lows and higher highs, which is bullish technical price action.
Traders should now look for long-biased trades in ABTL as long as it's trending above Monday's low of $11 or above $10 and then once it sustains a move or close above Monday's high of $12.25 with volume that's near or above 126,855 shares. If we get that move soon, then ABTL will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $14 to $15.
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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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