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.
Tableau Software
Tableau Software (DATA) provides software products to help people see and understand data. This stock closed up 1.7% to $65.13 in Wednesday's trading session.
Wednesday's Volume: 1.95 million
Three-Month Average Volume: 408,032
Volume % Change: 476%
From a technical perspective, DATA rose modestly higher here with heavy upside volume. This stock recently formed a double bottom chart pattern at $59.50 to $58.96. Following that bottom, shares of DATA have spiked sharply higher and it's now moving within range of triggering a near-term breakout trade. That trade will hit if DATA manages to take out its 50-day moving average at $68.76 to more near-term overhead resistance at $70 with high volume.
Traders should now look for long-biased trades in DATA as long as it's trending above Wednesday's low of $63.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 408,032 shares. If we get that move soon, then DATA will set up to re-test or possibly take out its next major overhead resistance levels at $73.45 to its all-time high at $77.74.
Pinnacle Entertainment
Pinnacle Entertainment (PNK) is an owner, operator and developer of casinos and related hospitality and entertainment facilities. This stock closed up 7% at $24.33 in Wednesday's trading session.
Wednesday's Volume: 3.01 million
Three-Month Average Volume: 855,380
Volume % Change: 260%
From a technical perspective, PNK ripped sharply higher here right above some near-term support at $22.40 with heavy upside volume. This move briefly pushed shares of PNK back above its 50-day moving average of $24.35, before the stock closed just below that level at $24.33. This move also briefly pushed shares of PNK into breakout territory, since it flirted with some near-term overhead resistance at $24.51. This move is starting to push shares of PNK within range of triggering another breakout trade. That trade will hit if PNK manages to take out Wednesday's high of $24.95 to its 52-week high at $25.86 with high volume.
Traders should now look for long-biased trades in PNK as long as it's trending above Wednesday's low of $22.67 and then once it sustains a move or close above those breakout levels with volume that hits near or above 855,380 shares. If that breakout hits soon, then PNK will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $30 to $32.
Keryx Biopharmaceuticals
Keryx Biopharmaceuticals (KERX) is a biopharmaceutical company engaged in the acquisition, development and commercialization of medically important pharmaceutical products for the treatment of cancer and renal disease. This stock closed up 8.3% at $14.28 in Wednesday's trading session.
Wednesday's Volume: 9.33 million
Three-Month Average Volume: 2.30 million
Volume % Change: 258%
From a technical perspective, KERX ripped higher here into new 52-week high territory with big upside volume. This stock recently gapped up sharply and broke out above some near-term overhead resistance levels at $11.24 to $11.90 with strong upside volume. Market players should now look for a continuation move higher in the short-term if KERX can manage to take a new 52-week high soon.
Traders should now look for long-biased trades in KERX as long as it's trending above Wednesday's low of $13.11 or above more near-term support just above $12.50 and then once it sustains a move or close above Wednesday's high of $14.49 with volume that's near or above 2.30 million shares. If we get that move soon, then KERX will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that move are $17 to $20.
ChannelAdvisor
ChannelAdvisor (ECOM) is a provider of software-as-a-service solutions that enables retailers and manufacturers to integrate, manage and optimize their merchandise sales across hundreds of online channels. This stock closed up 13.1% at $39.16 in Wednesday's trading session.
Wednesday's Volume: 3.31 million
Three-Month Average Volume: 221,172
Volume % Change: 1698%
From a technical perspective, ECOM skyrocketed higher here right off its 50-day moving average of $35.19 with monster upside volume. This move is quickly pushing shares of ECOM within range of triggering a major breakout trade. That trade will hit if ECOM manages to take out some near-term overhead resistance at $40.91 to its all-time high at $41.25 with high volume.
Traders should now look for long-biased trades in ECOM as long as it's trending above $37.50 or above its 50-day at $35.19 and then once it sustains a move or close above those breakout levels with volume that's near or above 221,172 shares. If we get that move soon, then ECOM will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $45 to $50, or even $55.
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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