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.
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 today.
BlackBerry
BlackBerry (BBRY) is a designer, manufacturer and marketer of wireless solutions for the worldwide mobile communications market. This stock closed up 10.4% to $10.78 in Monday's trading session.
Monday's Volume: 92.69 million
Three-Month Average Volume: 22.71 million
Volume % Change: 301%
Shares of BBRY ripped higher on Monday after the company said it had formed a committee to explore strategic alternatives to enhance value and increase scale in order to accelerate BlackBerry 10 deployment.
From a technical perspective, BBRY gapped sharply higher here and broke out above some near-term overhead resistance levels at $9.88 to $9.93 with heavy upside volume. This move has now pushed shares of BBRY within range of triggering another big breakout trade. That trade will hit if BBRY manages to take out its gap down day high from late June at $10.98 and then once it clears its 50-day moving average at $11.14 with high volume.
Traders should now look for long-biased trades in BBRY as long as it's trending above $10 or $9.88 and then once it sustains a move or close above those breakout levels with volume that hits near or above 22.71 million shares. If that breakout hits soon, then BBRY will set up to re-fill some of its previous gap down zone from June that started at $15.09. Some possible upside targets if BBRY gets into that gap with volume are its 200-day at $12.80 to $13.50.
Synchronoss Technologies
Synchronoss Technologies (SNCR) is a provider of on-demand transaction management solutions. This stock closed up 1% at $35.38 in Monday's trading session.
Monday's Volume: 508,000
Three-Month Average Volume: 284,678
Volume % Change: 80%
From a technical perspective, SNCR trended up modestly higher here right above some near-term support at $34.27 with above-average volume. This stock has been uptrending strong for the last month and change, with shares moving higher from its low of $26.60 to its recent high of $36.49. During that move, shares of SNCR have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of SNCR within range of triggering a near-term breakout trade. That trade will hit if SNCR manages to take out some near-term overhead resistance levels at $36 to its 52-week high at $36.49 with high volume.
Traders should now look for long-biased trades in SNCR as long as it's trending above some support at $34 and then once it sustains a move or close above those breakout levels with volume that this near or above 284,678 shares. If that breakout hits soon, then SNCR will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $40 to $43.
Open Text
Open Text (OTEX) is engaged in providing a suite of information management software products. This stock closed up 1% at $67.93 in Monday's trading session.
Monday's Volume: 736,000
Three-Month Average Volume: 225,916
Volume % Change: 198%
From a technical perspective, OTEX trended modestly higher here right above some near-term support levels at $66 to $64.47 with above-average volume. This move is starting to push shares of OTEX within range of triggering a near-term breakout trade. That trade will hit if OTEX manages to take out its 50-day moving average at $69.63 with high volume.
Traders should now look for long-biased trades in OTEX as long as it's trending above $66 or $65 and then once it sustains a move or close above its 50-day at $69.63 with volume that hits near or above 225,916 shares. If that breakout triggers soon, then OTEX will set up to re-test or possibly take out its next major overhead resistance levels at $72.44 to its 52-week high at $73.77.
ACI Worldwide
ACI Worldwide (ACIW) develops, markets, installs and supports a line of software products and services primarily focused on facilitating electronic payments. This stock closed up 5.6% at $51.50 in Monday's trading session.
Monday's Volume: 922,000
Three-Month Average Volume: 252,148
Volume % Change: 241%
From a technical perspective, ACIW jumped higher here and broke out above some near-term overhead resistance at $49.941 with heavy upside volume. This move is coming after shares of ACIW recently dipped from $49.91 to $46 with heavy downside volume. Shares of ACIW are now trending within range of triggering a major breakout trade. That trade will hit if ACIW manages to take out its 52-week and Monday's intraday high of $51.88 with high volume.
Traders should now look for long-biased trades in ACIW as long as it's trending above that first breakout level of $49.91 or above more near-term support at $48 and then once it sustains a move or close above $51.88 with volume that's near or above 252,148 shares. If that breakout hits soon, then ACIW will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $55 to $60.
Radware
Radware (RDWR) develops, manufactures and markets integrated networking solutions. This stock closed up 3.6% at $15.11 in Monday's trading session.
Monday's Volume: 393,000
Three-Month Average Volume: 234,812
Volume % Change: 55%
From a technical perspective, RDWR jumped higher here right off its 50-day moving average of $14.44 with above-average volume. This stock has been trending sideways inside of a consolidation chart pattern for the last four months, with shares moving between $13.42 on the downside and $16.11 on the upside. This spike higher on Monday is now starting to push shares of RDWR within range of triggering a breakout trade above the upper-end of its sideways trading chart pattern. That trade will hit if RDWR manages to clear some near-term overhead resistance levels at $15.33 to $16.11 and then once it takes out its 200-day moving average at $16.13 with high volume.
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Traders should now look for long-biased trades in RDWR as long as it's trending above its 50-day at $14.44 and then once it sustains a move or close above those breakout levels with volume that's near or above 234,812 shares. If that breakout hits soon, then RDWR will set up to re-fill some of its previous gap down zone from April that started near $19.
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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