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.
Crocs
Crocs (CROX) is engaged in the design, development, manufacturing, marketing and distribution of consumer products, mainly casual and athletic shoes and shoe charms, from specialty resins referred to as Croslite. This stock closed up 9.7% to $13.89 in Wednesday's trading session.
Wednesday's Volume: 12.85 million
Three-Month Average Volume: 1.31 million
Volume % Change: 857%
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From a technical perspective, CROX exploded higher here back above its 50-day moving average of $13.34 with monster upside volume. This move briefly pushed shares of CROX into breakout territory, since the stock flirted with some near-term overhead resistance levels at $13.94 to $14.45. Shares of CROX closed just below those breakout levels at $13.89. Market players should now look for a continuation move higher in the short-term if CROX can manage to take out Wednesday's intraday high of $14.53 and its 200-day moving average at $14.99 with high volume.
Traders should now look for long-biased trades in CROX as long as it's trending above its 50-day at $13.34 or above Wednesday's low of $12.60 and then once it sustains a move or close above $14.53 to $14.99 with volume that hits near or above 1.31 million shares. If we get that move soon, then CROX will set up to re-fill some of its previous gap down zone from July that started near $17.50.
GenMark Diagnostics
GenMark Diagnostics (GNMK), a molecular diagnostics company, develops and commercializes its proprietary eSensor detection technology. This stock closed up 5.7% to $12.70 in Wednesday's trading session.
Wednesday's Volume: 970,000
Three-Month Average Volume: 335,302
Volume % Change: 332%
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From a technical perspective, GNMK ripped sharply higher here back above both its 50-day and 200-day moving averages with strong upside volume. This move briefly pushed shares of GNMK into breakout territory, since the stock flirted with some key overhead resistance at $12.84. Shares of GNMK closed just below that breakout level at $12.70. Market players should now look for a continuation move higher for GNMK into the short-term if the stock can manage to take out Wednesday's intraday high of $12.98 with high volume.
Traders should now look for long-biased trades in GNMK as long as it's trending above its 200-day at $12.02 or above Wednesday's low of $11.40 and then once it sustains a move or close above Wednesday's high of $12.98 with volume that hits near or above 335,302 shares. If we get that move soon, then GNMK will set up to re-test or possibly take out its 52-week high at $16.
Pharmacyclics
Pharmacyclics (PCYC) is focused on developing and commercializing innovative small-molecule drugs for the treatment of cancer and immune mediated diseases. This stock closed up 3.4% at $123.82 in Wednesday's trading session.
Wednesday's Volume: 3.08 million
Three-Month Average Volume: 743,305
Volume % Change: 335%
From a technical perspective, PCYC spiked higher here right off some near-term support at $115 with strong upside volume. This move briefly pushed shares of PCYC back above its 50-day moving average of $124.61, before the stock finished the day just below that level at $123.82. Market players should now look for a continuation move higher in the short-term if PCYC can manage to take out Wednesday's intraday high of $129.45 to more resistance at $130 with high volume.
Traders should now look for long-biased trades in PCYC as long as it's trending above $120 or above Wednesday's low of $115 and then once it sustains a move or close above $129.45 to $130 with volume that hits near or above 743,305 shares. If we get that move soon, then PCYC will set up to re-test or possibly take out its next major overhead resistance levels at $136 to its 52-week high at $143.34. Any high-volume moves above its 52-week high will then give PCYC a chance to tag $150.
EnerSys
EnerSys (ENS) manufactures, markets and distributes industrial batteries and related products such as chargers, power equipment and battery accessories. This stock closed up 1.3% to $68.58 in Wednesday's trading session.
Wednesday's Volume: 874,000
Three-Month Average Volume: 274,742
Volume % Change: 251%
From a technical perspective, ENS ripped higher here right above some near-term support at $66 to $64.50 with strong upside volume. This stock has been uptrending strong for the last six months, with shares moving higher from it low of $47.05 to its recent high of $69.32. During that uptrend, shares of ENS have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of ENS within range of triggering a near-term breakout trade. That trade will hit if ENS manages to take out Wednesday's high of $68.81 to its 52-week high at $69.32 with high volume.
Traders should now look for long-biased trades in ENS as long as it's trending above Wednesday's low of $67.11 or above more support at $64.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 274,742 shares. If that breakout hits soon, then ENS will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $75 to $80.
Insys Therapeutics
Insys Therapeutics (INSY) is a specialty pharmaceutical company that develops and commercializes supportive care products that target the unmet needs of cancer patients, with an initial focus on cancer-supportive care. This stock closed up 8.4% at $44.31 in Wednesday's trading session.
Wednesday's Volume: 640,000
Three-Month Average Volume: 262,182
Volume % Change: 144%
From a technical perspective, INSY spiked sharply higher here right above its 50-day moving average of $38.88 with above-average volume. This move is quickly pushing shares of INSY within range of triggering a near-term breakout trade. That trade will hit if INSY manages to take out Wednesday's high of $45.57 to more near-term overhead resistance at $48 with high volume.
Traders should now look for long-biased trades in INSY as long as it's trending above Wednesday's low of $41.11 or above its 50-day at $38.88 and then once it sustains a move or close above those breakout levels with volume that's near or above 262,182 shares. If that breakout hits soon, then INSY will set up to re-test or possibly take out its all-time high at $53.64. Any high-volume move above that level will then give INSY a chance to tag $55 to $60.
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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