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."
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With that in mind, let's take a look at several stocks rising on unusual volume recently.
CME Group
CME Group (CME), through its subsidiaries, operates contract markets for the trading of futures and options on futures contracts worldwide. This stock closed up 0.7% to $71.58 in Wednesday's trading session.
Wednesday's Volume: 3.07 million
Three-Month Average Volume: 1.46 million
Volume % Change: 122%
From a technical perspective, CME bounced modestly higher here right off its 50-day moving average of $70.48 with above-average volume. This spike higher on Wednesday is starting to push shares of CME within range of triggering a major breakout trade. That trade will hit if CME manages to take out some key near-term overhead resistance levels at $72.49 to its 200-day moving average of $73 with high volume.
Traders should now look for long-biased trades in CME as long as it's trending above its 50-day moving average at $70.48 or above more support near $69 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.46 million shares. If that breakout hits soon, then CME will set up to re-test or possibly take out its next major overhead resistance levels at $75 to $77.
Anacor Pharmaceuticals
Anacor Pharmaceuticals (ANAC), a biopharmaceutical company, focuses on discovering, developing and commercializing novel small-molecule therapeutics derived from its boron chemistry platform. This stock closed up 1.6% to $17.29 in Wednesday's trading session.
Wednesday's Volume: 1.37 million
Three-Month Average Volume: 433,181
Volume % Change: 195%
From a technical perspective, ANAC jumped higher here right off both its 50-day moving average at $15.97 and its 200-day moving average of $16.25 with strong upside volume flows. This move higher on Wednesday is starting to push shares of ANAC within range of triggering a big breakout trade. That trade will hit if ANAC manages to take out Wednesday's intraday high of $17.35 and then once it clears more key near-term overhead resistance at $18.73 with high volume.
Traders should now look for long-biased trades in ANAC as long as it's trending above its 50-day at $15.97 and then once it sustains a move or close above those breakout levels with volume that hits near or above 433,181 shares. If that breakout triggers soon, then ANAC will set up to re-test or possibly take out its next major overhead resistance levels at $21.27 to its 52-week high at $23.07.
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 4% at $32.66 in Wednesday's trading session.
Wednesday's Volume: 34.44 million
Three-Month Average Volume: 1.95 million
Volume % Change: 1989%
From a technical perspective, CBSO spiked sharply higher here back above its 50-day moving average of $31.96 and into breakout territory above some near-term overhead resistance at $32.50 with monster upside volume flows. Market players should now look for a continuation move to the upside in the short-term if CBSO manages to take out Wednesday's intraday high of $33.05 with high volume.
Traders should now look for long-biased trades in CBSO as long as it's trending above its 50-day at $31.96 or above more support near $31.50 and then once it sustains a move or close above $33.05 with volume that hits near or above 1.95 million shares. If that breakout gets underway soon, then CBSO will set up to re-test or possibly take out its next major overhead resistance level at its all-time high of $35.69.
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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