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.
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Cedar Fair
Cedar Fair (FUN) is a regional amusement park operator that owns eleven amusement parks, six outdoor water parks, one indoor water park and five hotels. This stock closed up 1.2% at $43.55 in Wednesday's trading session.
Wednesday's Volume: 1.21 million
Three-Month Average Volume: 105,952
Volume % Change: 863%
From a technical perspective, FUN bounced modestly higher here right above some near-term support at $42.67 and back above its 50-day moving average at $43.33 with monster upside volume. This move is quickly pushing shares of FUN within range of triggering a near-term breakout trade. That trade will hit if FUN manages to take out Wednesday's high of $44.20 to its 52-week high at $44.49 with high volume.
Traders should now look for long-biased trades in FUN as long as it's trending above Wednesday's low of $42.85 or above that recent low of $42.67 and then once it sustains a move or close above those breakout levels with volume that hits near or above 105,952 shares. If that breakout hits soon, then FUN will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $50 to $53.
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 19.7% to $10.49 in Wednesday's trading session.
Wednesday's Volume: 9.47 million
Three-Month Average Volume: 1.98 million
Volume % Change: 426%
From a technical perspective, KERX exploded higher here right above some near-term support at $8.61and back above its 50-day moving average of $9.29 with monster upside volume. This move has taken shares of KERX out of its recent downtrend over the last few weeks, which saw the stock fall from $10.92 to its recent low of $8.61. Shares of KERX are now quickly moving within range of triggering a major breakout trade. That trade will hit if KERX manages to take out Wednesday's high of $10.58 to its 52-week high at $10.92 with high volume.
Traders should now look for long-biased trades in KERX as long as it's trending above its 50-day at $9.29, and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.98 million shares. If that breakout hits 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 breakout are $13 to $15.
Phoenix New Media
Phoenix New Media (FENG) is a new media company providing premium content on an integrated platform across Internet, mobile and TV channels in China. This stock closed up 6.1% at $11.67 in Wednesday's trading session.
Wednesday's Volume: 1.32 million
Three-Month Average Volume: 771,903
Volume % Change: 175%
From a technical perspective, FENG ripped higher here right above some near-term support at $10.96 with above-average volume. This stock just formed a double bottom chart pattern at $11.02 to $10.96. Shares of FENG are now quickly moving within range of triggering a big breakout trade. That trade will hit if FENG manages to take out some near-term overhead resistance at $11.90 to its 52-week high at $13 with high volume.
Traders should now look for long-biased trades in FENG as long as it's trending above some key near-term support levels at $10.96 or its 50-day at $10.27 and then once it sustains a move or close above those breakout levels with volume that this near or above 771,903 shares. If that breakout hits soon, then FENG will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $15 to $16.
Radian Group
Radian Group (RDN) provides credit-related insurance coverage and financial services to mortgage lenders and other financial institutions. This stock closed up 7.6% to $14.46 in Wednesday's trading session.
Wednesday's Volume: 9.35 million
Three-Month Average Volume: 4.67 million
Volume % Change: 325%
From a technical perspective, RDN ripped higher here right off its 50-day moving average of $13.58 with monster upside volume. This move pushed shares of RDN into breakout territory, since the stock took out some near-term overhead resistance levels at $14.27 to $14.42. Shares of RDN are now quickly moving within range of triggering an even bigger breakout trade. That trade will hit if RDN manages to take out Wednesday's high of $14.51 to its 52-week high at $14.80 with high volume.
Traders should now look for long-biased trades in RDN as long as it's trending above its 50-day at $13.58 and then once it sustains a move or close above those breakout levels with volume that hits near or above 4.67 million shares. If that breakout hits soon, then RDN 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.
Portola Pharmaceuticals
Portola Pharmaceuticals (PTLA) is a biopharmaceutical company that develops and commercializes novel therapeutics in the areas of thrombosis, other hematologic disorders and inflammation for patients who currently have limited or no approved treatment options. This stock closed up 11.9% to $25.55 in Wednesday's trading session.
Wednesday's Volume: 1.03 million
Three-Month Average Volume: 78,362
Volume % Change: 1075%
From a technical perspective, PTLA exploded higher here back above its 50-day moving average of $24.22 with monster upside volume. This move is quickly pushing shares of PTLA within range of triggering a major breakout trade. That trade will hit if PTLA manages to take out Wednesday's high of $26.70, and then once it clears its all-time high of $30.95 with high volume.
Traders should now look for long-biased trades in PTLA as long as it's trending above its 50-day at $24.22 or above $23 and then once it sustains a move or close above those breakout levels with volume that hits near or above 78,362 million shares. If that breakout hits soon, then PTLA will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $35 to $40.
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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