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.
United Rentals
United Rentals (URI) is an equipment rental company and its network consists of 529 rental locations in the U.S., Canada and Mexico. This stock closed up 4.2% at $59.79 in Wednesday's trading session.
Wednesday's Volume: 6.21 million
Three-Month Average Volume: 1.64 million
Volume % Change: 232%
From a technical perspective, URI spiked higher here right off its 50-day moving average of $56.72 with above-average volume. This stock has been uptrending modestly over the last two months, with shares moving higher from its low of $52.39 to its intraday high of $61.43. During that uptrend, shares of URI have been making mostly higher lows and higher highs, which is bullish technical price action.
Traders should now look for long-biased trades in URI as long as it's trending above its 50-day at $56.72 and then once it sustains a move or close above its new 52-week high at $61.43 with volume that's near or above 1.64 million shares. If we get that move soon, then URI will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $65 to $70.
Insulet
Insulet (PODD) is a medical device company that develops, manufactures and markets an innovative, discreet and easy-to-use insulin infusion system for people with insulin-dependent diabetes. This stock closed up 6.6% at $37.69 in Wednesday's trading session.
Wednesday's Volume: 1.06 million
Three-Month Average Volume: 357,791
Volume % Change: 185%
From a technical perspective, PODD spiked sharply higher here right off its 50-day moving average of $35.02 with above-average volume. This stock has been uptrending strong for the last six months, with shares soaring higher from its low of $23.50 to its recent high of $38.27. During that uptrend, shares of PODD have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of PODD within range of triggering a major breakout trade. That trade will hit if PODD manages to take out Wednesday's high of $37.85 to its 52-week high at $38.27 with high volume.
Traders should now look for long-biased trades in PODD as long as it's trending above its 50-day at $35.02 or above more near-term support at $34.39 and then once it sustains a move or close above those breakout levels with volume that hits near or above 357,791 shares. If that breakout hits soon, then PODD will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $43 to $45.
AngioDynamics
AngioDynamics (ANGO) provides medical devices used in minimally invasive, image-guided procedures to treat peripheral vascular disease, and local oncology therapy options for treating cancer. This stock closed up 3.4% at $14.96 in Wednesday's trading session.
Wednesday's Volume: 429,000
Three-Month Average Volume: 118,626
Volume % Change: 232%
From a technical perspective, ANGO trended higher here with above-average volume. This stock has been uptrending strong for the last month and change, with shares exploding higher from its low of $10.84 to its recent high of $15.15. During that uptrend, shares of ANGO have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of ANGO within range of triggering a near-term breakout trade. That trade will hit if ANGO manages to take out Wednesday's high of $15.02 and then its 52-week high at $15.15 with high volume.
Traders should now look for long-biased trades in ANGO as long as it's trending above some near-term support levels at $14 or $13.50 and then once it sustains a move or close above those breakout levels with volume that's near or above 118,626 shares. If that breakout hits soon, then ANGO will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are its next major overhead resistance levels at $16.50 to $17, or even $20.
SolarCity
SolarCity (SCTY) is engaged in designing, sales, engineering, installation, monitoring, maintenance and financing of solar energy systems to residential and commercial customers, and sale of electricity generated by solar energy systems to customers. This stock closed up 12.5% at $52.38 in Wednesday's trading session.
Wednesday's Volume: 14.78 million
Three-Month Average Volume: 2.97 million
Volume % Change: 337%
From a technical perspective, SCTY exploded higher here right above some near-term support at $45 with monster upside volume. This stock has been uptrending strong over the last month and change, with shares moving higher from its low of $28.31 to its intraday high of $52.65. During that uptrend, shares of SCTY have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of SCTY within range of triggering a major breakout trade. That trade will hit if SCTY manages to take out its all-time high of $52.77 with high volume.
Traders should now look for long-biased trades in SCTY as long as it's trending above Wednesday's low of $47.12, and then once it sustains a move or close above $52.77 with volume that's near or above 2.97 million shares. If that breakout hits soon, then SCTY will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $60 to $65.
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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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