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.
Weight Watchers International
Weight Watchers International (WTW) is a provider of weight management services, operating globally through a network of company-owned and franchise operations. This stock closed up 3.9% at $33.38 in Friday's trading session.
Friday's Volume: 3.17 million
Three-Month Average Volume: 843,488
Volume % Change: 262%
From a technical perspective, WTW spiked higher here with strong upside volume flows. This stock recently gapped down sharply from $40.93 to below $32 with heavy downside volume. Following that move, shares of WTW have started to rebound and move within range of triggering a near-term breakout trade. That trade will hit if WTW can manage to take out Friday's high of $33.40 to its gap down day high of $34.69 with high volume.
Traders should now look for long-biased trades in WTW as long as it's trending above $32, and then once it sustains a move or close above those breakout levels with volume that's near or above 843,488 shares. If that breakout hits soon, then WTW will set up to re-fill some of its previous gap down zone that started at $40.93. Some possible upside targets if WTW gets into that gap with volume are $36 to its 50-day moving average at $37.80.
WageWorks
WageWorks (WAGE) operates as an on-demand provider of tax-advantaged programs for consumer-directed health, and commuter and other employee spending account benefits in the U.S. This stock closed up 6.4% at $54.51 in Friday's trading session.
Friday's Volume: 597,000
Three-Month Average Volume: 393,757
Volume % Change: 95%
From a technical perspective, WAGE jumped sharply higher here with above-average volume. This move is quickly pushing shares of WAGE within range of triggering a big breakout trade. That trade will hit if WAGE manages to take out some near-term overhead resistance at $54.80 to its all-time high at $56.97 with high volume.
Traders should now look for long-biased trades in WAGE as long as it's trending above Friday's low of $52.28 and then once it sustains a move or close above those breakout levels with volume that's near or above 393,757 shares. If that breakout hits soon, then WAGE 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 $63.
Media General
Media General (MEG) is a provider of news, information and entertainment across 18 network-affiliated television stations, digital media and mobile platforms, serving consumers and advertisers in strong local markets, primarily in the Southeastern US. This stock closed up 4.3% at $15.22 in Friday's trading session.
Friday's Volume: 405,000
Three-Month Average Volume: 192,336
Volume % Change: 155%
From a technical perspective, MEG trended higher here with above-average volume. This move is quickly pushing shares of MEG within range of triggering a major breakout trade. That trade will hit if MEG manages to take out Friday's high of $15.32 to its 52-week high at $15.67 with high volume.
Traders should now look for long-biased trades in MEG as long as it's trending above Friday's low of $14.43 or above $14 and then once it sustains a move or close above those breakout levels with volume that's near or above 192,336 shares. If that breakout hits soon, then MEG will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $20 to $23.
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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