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.
>>5 Hated Earnings Stocks You Should Love
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.
>>5 Rocket Stocks for Blastoff Earnings Gains
With that in mind, let's take a look at several stocks rising on unusual volume recently.
500.com (WBAI_) provides online sports lottery services in the People's Republic of China. This stock closed up 6.5% to $35.59 in Monday's trading session.
Monday's Volume: 840,000
Three-Month Average Volume: 376,644
Volume % Change: 94%
am Dienstag,dies hier von Montag
From a technical perspective, WBAI bounced sharply higher here right above some near-term support at $32.82 and back above its 50-day moving average of $34.07 with above-average volume. This bounce higher on Monday is quickly pushing shares of WBAI within range of triggering a near-term breakout trade. That trade will hit if WBAI manages to take out Monday's intraday high of $35.63 and then once it clears more resistance at $36.20 with high volume.
Traders should now look for long-biased trades in WBAI as long as it's trending above Monday's intraday low of $33.35 or above more near-term support levels at $32.82 to $32 and then once it sustains a move or close above those breakout levels with volume that hits near or above 376,644 shares. If that breakout hits soon, then WBAI will set up to re-test or possibly take out its next major overhead resistance levels at $38 to $38.50, or even $41.
www.thestreet.com/story/12780742/1/...-on-unusual-volume.html?$39.95 on NYSE
Text zur Anzeige gekürzt. Gesamten Beitrag anzeigen »