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.
Fairway Group
Fairway Group (FWM) sells fresh, natural and organic products, prepared foods and hard to find specialty and gourmet offerings. This stock closed up 10.6% at $24.47 in Monday's trading session.
Monday's Volume: 388,000
Three-Month Average Volume: 146,163
Volume % Change: 190%
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From a technical perspective, FWM soared sharply higher here right off some near-term support at $22.03 and back above its 50-day at $24.02 with strong upside volume. This move is quickly pushing shares of FWM within range of triggering a big breakout trade. That trade will hit if FWM manages to take out Monday's high of $25.67 to $25.93 and then once it clears more key overhead resistance levels at $27.31 to its all-time high at $28.87 with high volume.
Traders should now look for long-biased trades in FWM as long as it's trending above support at $22.03 and then once it sustains a move or close above those breakout levels with volume that's near or above 146,163 shares. If that breakout hits soon, then FWM will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that move are $33 to $35.
Buckeye Partners
Buckeye Partners (BPL) owns and operates refined petroleum products pipeline systems. This stock closed up 0.76% at $66.43 in Monday's trading session.
Monday's Volume: 1.67 million
Three-Month Average Volume: 407,520
Volume % Change: 189%
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From a technical perspective, BPL trended modestly higher here with strong upside volume. This move is quickly pushing shares of BPL within range of triggering a near-term breakout trade. That trade will hit if BPL manages to take out some near-term overhead resistance at $66.96 to its 50-day moving average at $67.19 with high volume.
Traders should now look for long-biased trades in BPL as long as it's trending above Monday's low of $65.02 and then once it sustains a move or close above those breakout levels with volume that's near or above 407,520 shares. If that breakout hits soon, then BPL will set up to re-fill some of its previous gap down zone from September that started just above $70. If that gap gets filled with volume, then shares of BPL will set up to re-test its 52-week high at $73.44.
Penn National Gaming
Penn National Gaming (PENN) is a diversified, multi-jurisdictional owner and manager of gaming and pari-mutuel properties. This stock closed up 0.95% at $56.05 in Monday's trading session.
Monday's Volume: 1.77 million
Three-Month Average Volume: 858,142
Volume % Change: 170%
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From a technical perspective, PENN spiked higher here right above some near-term support at $54.97 with strong upside volume. This stock has been uptrending strong for the last two months, with shares moving higher from its low of $48.70 to its recent high of $57.44. During that move, shares of PENN have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of PENN within range of triggering a near-term breakout trade. That trade will hit if PENN manages to take out some near-term overhead resistance levels at $56.67 to $57.44 with high volume.
Traders should now look for long-biased trades in PENN as long as it's trending above its 50-day at $54.40 or above its 200-day at $53.53, and then once it sustains a move or close above those breakout levels with volume that's near or above 858,142 shares. If that breakout hits soon, then PENN will set up to re-test or possibly take out its 52-week high at $59.93.
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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