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 recently.
GasLog
GasLog (GLOG), together with its subsidiaries, owns, operates and manages vessels in the liquefied natural gas market worldwide. This stock closed up 2.5% to $25.53 in Friday's trading session.
Friday's Volume: 5.39 million
Three-Month Average Volume: 1.06 million
Volume % Change: 612%
From a technical perspective, GLOG spiked notably higher here and broke out into new all-time-high territory with monster upside volume. This stock has been uptrending strong for the last six months, with shares soaring higher from its low of $14 to its intraday high of $26.72. During that uptrend, shares of GLOG have been consistently making higher lows and higher highs, which is bullish technical price action. Market players should now look for a continuation move higher in the short-term if GLOG manages to take out Friday's high of $26.72 with strong volume.
Traders should now look for long-biased trades in GLOG as long as it's trending above support at $24 or above its 50-day at $22.60 and then once it sustains a move or close above $26.72 with volume that hits near or above 1.06 million shares. If that move materializes soon, the GLOG 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 $35.
Diamondback Energy
Diamondback Energy (FANG), an independent oil and natural gas company, focuses on the acquisition, development, exploration and exploitation of onshore oil and natural gas reserves in the Permian Basin in West Texas. This stock closed up 3% at $67.60 in Friday's trading session.
Friday's Volume: 2.50 million
Three-Month Average Volume: 932,910
Volume % Change: 166%
From a technical perspective, FANG jumped higher here right above some near-term support at $64.43 with above-average volume. This stock has been consolidating and trending sideways for the last few weeks above its 50-day moving average, with shares moving between $64 on the downside and $70.99 on the upside. Shares of FANG flirted with a breakout on Friday after the stock briefly traded above some near-term overhead resistance at $68.87. This stock hit an intraday high of $70.72 before it closed at $67.60. Shares of FANG are now starting to move within range of triggering another big breakout trade. That trade will hit if FANG manages to take out Friday's high of $70.72 to its all-time high at $70.99 with high volume.
Traders should now look for long-biased trades in FANG as long as it's trending above support at $64.43 or above its 50-day at $62.82 and then once it sustains a move or close above those breakout levels with volume that hits near or above 932,910 shares. If that breakout starts soon, then FANG will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $75 to $80.
Targa Resources Partners LP
Targa Resources Partners LP (NGLS) is engaged in the ownership, operation, acquisition and development of midstream energy assets in the U.S. This stock closed up 2.3% to $60.08 in Friday's trading session.
Friday's Volume: 496,000
Three-Month Average Volume: 288,562
Volume % Change: 76%
From a technical perspective, NGLS spiked notably higher here with above-average volume. This stock has been uptrending strong for the last three months and change, with shares moving higher from its low of $47.40 to its recent high of $61.59. During that uptrend, shares of NGLS have been making mostly higher lows and higher highs, which is bullish technical price action. This move on Friday is now starting to push shares of NGLS within range of triggering a big breakout trade. That trade will hit if NGLS manages to take out Friday's high of $60.27 to its 52-week high at $61.59 with high volume.
Traders should now look for long-biased trades in NGLS as long as it's trending above some key near-term support at $58 and then once it sustains a move or close above those breakout levels with volume that hits near or above 288,562 shares. If that breakout gets underway soon, then NGLS will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $65 to $70.
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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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