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.
Angie's List
Angie's List (ANGI) operates a consumer-driven solution for its members to research, hire, rate and review local professionals for home, health care and automotive service needs. This stock closed up 3.1% to $16.80 in Friday's trading session.
Friday's Volume: 3.01 million
Three-Month Average Volume: 1.26 million
Volume % Change: 160%
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From a technical perspective, ANGI spiked notably higher here with above-average volume. This stock has been uptrending for the last few weeks, with shares moving higher from its low of $12.71 to its intraday high on Friday of $17.49. During that move, shares of ANGI 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 ANGI manages to take out Friday's high of $17.49 with strong volume.
Traders should now look for long-biased trades in ANGI as long as it's trending above $16 or above $15 and then once it sustains a move or close above $17.49 with volume that hits near or above 1.26 million shares. If we get that move soon, the ANGI will set up to re-test or possibly take out its next major overhead resistance levels at $19 to its 200-day moving average at $19.88.
Eagle Bancorp
Eagle Bancorp (EGBN) operates as a bank holding company for EagleBank, which provides commercial and consumer banking services in the U.S. This stock closed up 2.4% to $33.30 in Friday's trading session.
Friday's Volume: 142,000
Three-Month Average Volume: 78,819
Volume % Change: 74%
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From a technical perspective, EGBN spiked notably higher here and broke out into new 52-week-high territory with above-average volume. This stock recently formed a double bottom chart pattern at $29.35 to $29.24. Following that bottom, shares of EGBN have spiked higher and broke out to new highs. Market players should now look for a continuation move higher in the short-term if EGBN manage to take out Friday's high of $33.67 with strong volume.
Traders should now look for long-biased trades in EGBN as long as it's trending above $32 or $31 and then once it sustains a move or close above Friday's high of $33.67 with volume that hits near or above 78,819 shares. If we get that move soon, then EGBN will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $37 to $40.
PriceSmart
PriceSmart (PSMT), together with its subsidiaries, owns and operates membership shopping warehouse clubs in Latin American and Caribbean. This stock closed up 0.9% at $95.07 in Friday's trading session.
Friday's Volume: 260,000
Three-Month Average Volume: 168,695
Volume % Change: 63%
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From a technical perspective, PSMT spiked modestly higher here with above-average volume. This stock has been downtrending badly for the last two months, with shares plunging sharply lower from its high of $126.46 to its low on Friday of $93.17. During that downtrend, shares of PSMT have been consistently making lower highs and lower lows, which is bearish technical price action. That move has pushed shares of PSMT into oversold territory, since its current relative strength index reading is 24.86. Oversold can always get more oversold, but it's also an area where a stock can experience a powerful bounce higher form.
Traders should now look for long-biased trades in PSMT as long as it's trending above Friday's low of $93.17 or above $92 and then once it sustains a move or close above Friday's high of $95.50 to its 200-day moving average of $97.13 with volume that hits near or above 168,695 shares. If we get that move soon, then PSMT will set up to bounce off oversold levels back to it next major overhead resistance levels at $107 to $110.
Hydrogenics
Hydrogenics (HYGS), together with its subsidiaries, designs, develops and provides hydrogen generation and fuel cell products based on water electrolysis technology and proton exchange membrane technology. This stock closed up 2.6% to $21.35 in Friday's trading session.
Friday's Volume: 142,000
Three-Month Average Volume: 76,523
Volume % Change: 306%
From a technical perspective, HYGS spiked notably higher here with above-average volume. This stock has been uptrending strong for the last three months and change, with shares moving higher from its low of $11.05 to its recent high of $23.84. During that uptrend, shares of HYGS have been making mostly higher lows and higher highs, which is bullish technical price action. This move is quickly pushing shares of HYGS within range of triggering a major breakout trade. That trade will hit if HYGS manages to take out some near-term overhead resistance levels at $22.50 to its 52-week high at $23.84 with high volume.
Traders should now look for long-biased trades in HYGS as long as it's trending above Friday's low of $19.55 or above $19 and then once it sustains a move or close above those breakout levels with volume that hits near or above 76,523 shares. If that breakout triggers soon, then HYGS will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $27 to $30.
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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