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.
GT Advanced Technologies
GT Advanced Technologies (GTAT) is a technology company with innovative crystal growth equipment and solutions for solar, LED and electronics industries. This stock closed up 8.1% at $10.24 in Monday's trading session.
Monday's Volume: 8.78 million
Three-Month Average Volume: 5.12 million
Volume % Change: 195%
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From a technical perspective, GTAT spiked sharply higher here right above some near-term support at $9.14 with heavy upside volume. This stock has been uptrending strong for the last four months, with shares skyrocketing higher from its low of $3.44 to its recent high of $10.60. During that uptrend, shares of GTAT have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of GTAT within range of triggering a near-term breakout trade. That trade will hit if GTAT manages to take out Monday's high of $10.35 to its 52-week high at $10.60 with high volume.
Traders should now look for long-biased trades in GTAT as long as it's trending above some near-term support at $9.14 or above its 50-day at $8.15 and then once it sustains a move or close above those breakout levels with volume that's near or above 5.12 million shares. If that breakout hits soon, then GTAT 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 $16.
Opentable
Opentable (OPEN) provides solutions that form an online network connecting reservation-taking restaurants and people who dine at those restaurants. This stock closed up 3.8% at $80.69 in Monday's trading session.
Monday's Volume: 1.21 million
Three-Month Average Volume: 561,985
Volume % Change: 118%
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From a technical perspective, OPEN trended higher here right above some near-term support at $75.14 with above-average volume. This move is quickly pushing shares of OPEN within range of triggering a near-term breakout trade. That trade will hit if OPEN manages to take out Monday's high of $80.82 to its 52-week high at $82.87 with high volume.
Traders should now look for long-biased trades in OPEN as long as it's trending above Monday's low of $76.26 or above more support at $75.14, and then once it sustains a move or close above those breakout levels with volume that hits near or above 561,985 shares. If that breakout hits soon, then OPEN will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are it next major overhead resistance levels at $90 to $95.
JA Solar
JA Solar (JASO) designs, manufactures and markets high-performance solar cells, which are made from specially processed silicon wafers. This stock closed up 9.9% at $12.07 in Monday's trading session.
Monday's Volume: 7.10 million
Three-Month Average Volume: 2.77 million
Volume % Change: 295%
From a technical perspective, JASO ripped sharply higher here into new 52-week-high territory, with monster upside volume. This stock has been uptrending strong for the last three months, with shares moving higher from its low of $7 to its intraday high of $12.45. During that uptrend, shares of JASO have been making mostly 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 for JASO if this stock can make a new 52-week high soon.
Traders should now look for long-biased trades in JASO as long as it's trending above Monday's low of $11.05 or above $10.50 and then once it sustains a move or close above Monday's high of $12.45 to some past resistance at $12.85 with volume that's near or above 2.77 million shares. If we get that move soon, then JASO will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $16 to $17.
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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