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.
Envestnet
Envestnet (ENV) provides integrated wealth management software and services to financial advisors and institutions in the U.S. This stock closed up 2.3% at $39.59 in Monday's trading session.
Monday's Volume: 479,000
Three-Month Average Volume: 267,189
Volume % Change: 72%
From a technical perspective, ENV spiked modestly higher here into new 52-week high territory above some near-term overhead resistance at $38.70 with above-average volume. This stock has been uptrending strong for the last four months, with shares moving higher from its low of $24.58 to its intraday high of $41.11. During that uptrend, shares of ENV have been consistently making higher lows and higher highs, which is bullish technical price action.
Traders should now look for long-biased trades in ENV as long as it's trending above some near-term support at $38 or at $37 and then once it sustains a move or close above Monday's high of $41.11 with volume that's near or above 267,189 shares. If we get that move soon, then ENV will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $45 to $47.
Post Holdings
Post Holdings (POST) is a manufacturer, marketer and distributor of branded ready-to-eat cereals in the U.S. and Canada. This stock closed up 2% at $47.76 in Monday's trading session.
Monday's Volume: 599,000
Three-Month Average Volume: 233,948
Volume % Change: 150%
From a technical perspective, POST spiked modestly higher here and touched its all-time high at $49.32 with above-average volume. This stock has been uptrending strong for the last two months, with shares moving higher from its low of $38.31 to its intraday high of $49.32. During that uptrend, shares of POST have been making mostly higher lows and higher highs, which is bullish technical price action.
Traders should now look for long-biased trades in POST as long as it's trending above some near-term support levels at $47 or at $46 and then once it sustains a move or close above its all-time high at $49.32 with volume that's near or above 233,948 shares. If we get that move soon, then POST will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that move are $55 to $57.
Westinghouse Air Brake Technologies
Westinghouse Air Brake Technologies (WAB) is a provider of value-added, technology-based products and services for the rail industry. This stock closed up 1.2% at $68.61 in Monday's trading session.
Monday's Volume: 556,000
Three-Month Average Volume: 413,858
Volume % Change: 65%
From a technical perspective, WAB trended modestly higher here right above some near-term support at $66 with above-average volume. This move is quickly pushing shares of WAB within range of triggering a near-term breakout trade. That trade will hit if WAB manages to take out Monday's high of $68.64 and its 52-week high at $86.66 with high volume.
Traders should now look for long-biased trades in WAB as long as it's trending above support at $66 or above its 50-day at $64.77 and then once it sustains a move or close above those breakout levels with volume that's near or above 413,858 shares. If that breakout hits soon, then WAB will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $73 to $75.
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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