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.
CBS Outdoor Americas
CBS Outdoor Americas (CBSO) leases advertising space on out-of-home advertising structures and sites in the U.S., Canada and Latin America. This stock closed up 3% at $31.41 in Friday's trading session.
Friday's Volume: 2.05 million
Three-Month Average Volume: 1.45 million
Volume % Change: 344%
From a technical perspective, CBSO spiked sharply higher here and broke out above some near-term overhead resistance at $31 with above-average volume. This stock has been uptrending for the last few weeks, with shares moving higher from its low of $28.33 to its intraday high of $32. During that move, shares of CBSO have been consistently making higher lows and higher highs, which is bullish technical price action. Market players should now look for a continuation move higher in the short-term if CBSO manages to take out its all-time high at $32 with strong volume.
Traders should now look for long-biased trades in CBSO as long as it's trending above $31 or above $30 and then once it sustains a move or close above $32 with volume that hits near or above 1.45 million shares. If that move starts soon, then CBSO will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that move are $35 to $40.
WhiteWave Foods
WhiteWave Foods (WWAV), a consumer packaged food and beverage company, manufactures, markets, distributes and sells branded plant-based foods and beverages, coffee creamers and beverages, dairy and organic greens and produce products in North America and Europe. This stock closed up 2.4% at $29.48 in Friday's trading session.
Friday's Volume: 2.05 million
Three-Month Average Volume: 1.64 million
Volume % Change: 50%
From a technical perspective, WWAV trended notably higher here right above its 50-day moving average of $28.29 with above-average volume. This move higher on Friday is starting to push shares of WWAV within range of triggering a major breakout trade. That trade will hit if WWAV manages to take out some key near-term overhead resistance levels at $29.87 to its all-time high at $30.46 with high volume.
Traders should now look for long-biased trades in WWAV as long as it's trending above its 50-day at $28.29 or above $27 and then once it sustains a move or close above those breakout levels with volume that's near or above 1.64 million shares. If that breakout triggers soon, then WWAV will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $35 to $40.
WageWorks
WageWorks (WAGE) provides consumer-directed benefits programs to employees to save money on taxes in the U.S. This stock closed up 2% at $37.97 in Friday's trading session.
Friday's Volume: 1.20 million
Three-Month Average Volume: 362,436
Volume % Change: 254%
From a technical perspective, WAGE jumped higher here right off its intraday low of $33.04 with strong upside volume. This stock has been downtrending badly for the last month and change, with shares moving lower from its high of $64.75 to its intraday low of $33.04. During that downtrend, shares of WAGE have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of WAGE are now starting to rebound off its recent low of $33.04 with monster upside volume. Market players should now look for a potential trend change in the near-term if WAGE can manage to take out Friday's high of $38.37 with high volume.
Traders should now look for long-biased trades in WAGE as long as it's trending above $36 or $35 and then once it sustains a move or close above Friday's high of $38.37 with volume that's near or above 362,436 shares. If that move gets underway soon, then WAGE will set up to re-test or possibly take out its next major overhead resistance levels at $43.36 to $45.
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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