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.
SouFun
SouFun (SFUN) operates a real estate Internet portal in China. This stock closed up 11.2% at $57.19 in Friday's trading session.
Friday's Volume: 2.11 million
Three-Month Average Volume: 1.28 million
Volume % Change: 135%
From a technical perspective, SFUN ripped sharply higher here right off its 50-day moving average of $50.63 with above-average volume. This stock has been uptrending strong for the last four months, with shares soaring higher from its low of $22.29 to its recent high of $59.50. During that uptrend, shares of SFUN have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of SFUN within range of triggering a big breakout trade. That trade will hit if SFUN manages to take out Friday's high of $57.74 to its 52-week high at $59.50 with high volume.
Traders should now look for long-biased trades in SFUN as long as it's trending above $55 or $54 and then once it sustains a move or close above those breakout levels with volume that's near or above 1.28 million shares. If that breakout hits soon, then SFUN 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.
Nvidia
Nvidia (NVDA) is engaged in creating the graphics chips used in personal computers that bring games and home movies to life. This stock closed up 6.9% at $15.56 in Friday's trading session.
Friday's Volume: 18.36 million
Three-Month Average Volume: 7.50 million
Volume % Change: 350%
From a technical perspective, NVDA soared higher here back above its 50-day moving average of $15.41 with heavy upside volume. This move is quickly pushing shares of NVDA within range of triggering a major breakout trade. That trade will hit if NVDA manages to take out Friday's high of $15.61 to its 52-week high at $16.10, and then once it clears some key past resistance at $16.52 with high volume.
Traders should now look for long-biased trades in NVDA as long as it's trending above Friday's low of $14.93 or above more near-term support at $14.52 and then once it sustains a move or close above those breakout levels with volume that's near or above 7.50 million shares. If that breakout hits soon, then NVDA will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are its next major overhead resistance levels at $20 to $22.
Electronics for Imaging
Electronics for Imaging (EFII) deals in color digital print controllers, super-wide format printers and inks and print management solutions. This stock closed up 5.5% at $37.52 in Friday's trading session.
Friday's Volume: 1.05 million
Three-Month Average Volume: 276,832
Volume % Change: 270%
From a technical perspective, EFII spiked sharply higher here right above some near-term support at $34 with above-average volume. This move is quickly pushing shares of EFII within range of triggering a major breakout trade. That trade will hit if EFII manages to take out Friday's high of $38.19 to its 52-week high at $39.83 with high volume.
Traders should now look for long-biased trades in EFII as long as it's trending above Friday's low of $35.81 or above more support near $34 and then once it sustains a move or close above those breakout levels with volume that this near or above 276,832 shares. If that breakout hits soon, then EFII will set up to enter new 52-week-high territory above $17.21, which is bullish technical price action. Some possible upside targets off that breakout are $45 to $47.
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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