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.
Generac
Generac (GNRC) designs, manufactures and markets power generation equipment and other engine powered products for the residential, light commercial, industrial and construction markets in the U.S., Canada, and internationally. This stock closed up 4.2% at $48.94 in Monday's trading session.
Monday's Volume: 2.80 million
Three-Month Average Volume: 960,755
Volume % Change: 197%
From a technical perspective, GNRC spiked sharply higher here right above some near-term support at $45.87 with above-average volume. This stock has been downtrending badly over the last three month and change, with shares dropping sharply from its high of $62.50 to its recent low of $45.67. During that move, shares of GNRC have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of GNRC recently formed a double bottom chart pattern $45.67 to $45.87. This stock has started to rebound off those support levels and it now looks ready to reverse its downtrend and enter a new uptrend in the short-term.
Traders should now look for long-biased trades in GNRC as long as it's trending above $48 or above Monday's low of $46.97 and then once it sustains a move or close above some near-term resistance at $49 to $49.34 with volume that hits near or above 960,755 shares. If that move gets started soon, then GNRC will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day of $51.23 or its 50-day at $52.01. Any high-volume move above those levels will then give GNRC a chance to tag $53 to $54.
Grupo Financiero Galicia
Grupo Financiero Galicia (GGAL) operates as a financial services holding company in Argentina. This stock closed up 5.5% at $15.14 in Monday's trading session.
Monday's Volume: 1.69 million
Three-Month Average Volume: 592,561
Volume % Change: 191%
From a technical perspective, GGAL ripped sharply higher here right above its 50-day moving average of $13.38 with strong upside volume. This stock recently formed a double bottom chart pattern at $12 to $12.05. Following that bottom, shares of GGAL have started to spike higher and move back above its 50-day moving average. That move has now pushed shares of GGAL within range of triggering a near-term breakout trade. That trade will hit if GGAL manages to take out Monday's intraday high of $15.24 to its 52-week high of $15.33 with high volume.
Traders should now look for long-biased trades in GGAL as long as it's trending above Monday's intraday low of $14 or above its 50-day at $13.38 and then once it sustains a move or close above those breakout levels with volume that's near or above 592,561 shares. If that breakout hits soon, then GGAL will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $20 to $23.
Teekay Offshore Partners
Teekay Offshore Partners (TOO) provides marine transportation, oil production and storage services to the offshore oil industry in the North Sea and Brazil. This stock closed up 3.1% at $36.37 in Monday's trading session.
Monday's Volume: 402,000
Three-Month Average Volume: 148,923
Volume % Change: 166%
From a technical perspective, TOO bounced notably higher here right off its 50-day moving average of $35.18 with above-average volume. This stock recently pulled back from its high of $36.66 to just below its 50-day moving average at its low of $34.66. Following that pullback, shares of TOO are now starting to rebound higher back above its 50-day and it's quickly moving within range of triggering a near-term breakout trade. That trade will hit if TOO manages to clear some key near-term overhead resistance levels at $36.66 to its 52-week high of $36.74 with high volume.
Traders should now look for long-biased trades in TOO as long as it's trending above its 50-day at $35.18 or above some more near-term support at $34.66 and then once it sustains a move or close above those breakout levels with volume that's near or above 148,923 shares. If that breakout begins soon, then TOO 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 $45.
HSN
HSN (HSNI) operates as an interactive multi-channel retailer in the U.S. This stock closed up 2.6% at $58.63 in Monday's trading session.
Monday's Volume: 633,000
Three-Month Average Volume: 264,659
Volume % Change: 137%
From a technical perspective, HSNI gapped up notably higher here right above both its 200-day and 50-day moving averages with above-average volume. This spike higher on Monday briefly pushed shares of HSNI into breakout territory, since the stock flirted with some near-term overhead resistance at $58.86. Shares of HSNI tagged an intraday high of $59.06, before it closed just below that level at $58.63. Market players should now look for a continuation move to the upside if HSNI manages to take out Monday's intraday high of $59.06 with strong upside volume flows.
Traders should now look for long-biased trades in HSNI as long as it's trending above Monday's intraday low of $57.77 and then once it sustains a move or close above $59.06 with volume that's near or above 264.659 shares. If that move materializes soon, then HSNI will set up to re-test or possibly take out its next major overhead resistance levels at $61.13 to $61.61. Any high-volume move above those levels will then give HSNI a chance to tag its next major overhead resistance levels at $63 to $64.
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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