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.
CaesarStone Sdot-Yam
CaesarStone Sdot-Yam (CSTE) manufactures engineered quartz surfaces. This stock closed up 2.5% at $43.73 in Monday's trading session.
Monday's Volume: 456,000
Three-Month Average Volume: 284,725
Volume % Change: 94%
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From a technical perspective, CSTE spiked higher here right off its 50-day moving average of $42.33 with above-average volume. This bump higher is a continuation pattern of CSTE's recent move out of its downtrend that started in late September at $48.69 to its low of $36.26. That low of $36.26 was the end of CSTE's recent downside volatility. Shares of CSTE now look ready to continue its trend higher and potentially challenge its all-time highs.
Traders should now look for long-biased trades in CSTE as long as it's trending above its 50-day at $42.33 or above $42 and then once it sustains a move or close above Monday's high of $44.74 with volume that's near or above 284,725 shares. If we get that move soon, then CSTE will set up to re-test or possibly take out its all-time high at $48.69. Any high-volume move above that level will then give CSTE a chance to tag $50 to $53.
On Assignment
On Assignment (ASGN), a diversified professional staffing firm, provides short- and long-term placement of contract, contract-to-hire, and direct hire professionals in the U.S., Europe, Canada, China, Australia and New Zealand. This stock closed up 2.7% at $34.23 in Monday's trading session.
Monday's Volume: 446,000
Three-Month Average Volume: 347,663
Volume % Change: 50%
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From a technical perspective, ASGN spiked higher here right above its 50-day moving average of $32.41 with above-average volume. This stock has been uptrending strong for the last six months, with shares soaring higher from its low of $22.88 to its recent high of $35.07. During that uptrend, shares of ASGN have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of ASGN within range of triggering a big breakout trade. That trade will hit if ASGN manages to take out Monday's high of $34.34 to its 52-week high at $35.07 with high volume.
Traders should now look for long-biased trades in ASGN as long as it's trending above its 50-day at $32.41 and then once it sustains a move or close above those breakout levels with volume that's near or above 347,663 shares. If that breakout hits soon, then ASGN will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $40 to $43.
Bloomin Brands
Bloomin Brands (BLMN) operates as a casual dining restaurant business. This stock closed up 2.8% at $24.16 in Monday's trading session.
Monday's Volume: 765,000
Three-Month Average Volume: 575,388
Volume % Change: 50%
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From a technical perspective, BLMN spiked higher here and broke out above some near-term overhead resistance at $23.98 with above-average volume. This move is quickly pushing shares of BLMN within range of triggering another near-term breakout trade. That trade will hit if BLMN manages to take out some key overhead resistance levels at $24.65 to $25.49 with high volume.
Traders should now look for long-biased trades in BLMN as long as it's trending above Monday's low of $23.28 or above its 50-day at $22.94 and then once it sustains a move or close above those breakout levels with volume that's near or above 575,388 shares. If that breakout hits soon, then BLMN will set up to re-test or possibly take out its 52-week high at $26.71. Any high-volume move above that level will give BLMN a chance to tag $30.
Cardinal Health
Cardinal Health (CAH) is a health care services company providing products and services that help pharmacies, hospitals, surgery centers, physician offices and other health care providers. This stock closed up 1% at $55.55 in Monday's trading session.
Monday's Volume: 5.44 million
Three-Month Average Volume: 2.11 million
Volume % Change: 125%
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From a technical perspective, CAH spiked modestly higher here right above some near-term support levels at $55 to $54.34 with solid upside volume. This stock has been uptrending strong for the last six months, with shares moving higher from its low of $45.04 to its recent high of $56.78. During that uptrend, shares of CAH have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of CAH within range of triggering a near-term breakout trade. That trade will hit if CAH manages to take out Monday's high of $56.64 to its 52-week high at $56.78 with high volume.
Traders should now look for long-biased trades in CAH as long as it's trending above support at $55 or above $54.34 and then once it sustains a move or close above those breakout levels with volume that's near or above 2.11 million shares. If that breakout hits soon, then CAH will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $64 to $65.
Epizyme
Epizyme (EPZM) is a clinical-stage biopharmaceutical company that discovers, develops and plans to commercialize personalized therapeutics for patients with genetically defined cancers. This stock closed up 2.4% at $40 in Monday's trading session.
Monday's Volume: 203,000
Three-Month Average Volume: 129,742
Volume % Change: 50%
From a technical perspective, EPZM trended higher here with above-average volume. This move is quickly pushing shares of EPZM within range of triggering a major breakout trade. That trade will hit if EPZM manages to take out some near-term overhead resistance at $42.71 to its all-time high at $45.72 with high volume.
Traders should now look for long-biased trades in EPZM as long as it's trending above some near-term support at $37.50, and then once it sustains a move or close above those breakout levels with volume that's near or above 129,742 shares. If that breakout hits soon, then EPZM will set up to enter new all-time high territory above $45.72, which is bullish technical price action. Some possible upside targets off that move are $50 to $53.
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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