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.
Mentor Graphics
Mentor Graphics (MENT) supplies electronic design automation systems. This stock closed up 5.2% at $23.64 in Monday's trading session.
Monday's Volume: 1.78 million
Three-Month Average Volume: 554,255
Volume % Change: 224%
From a technical perspective, MENT ripped sharply higher here right above its 50-day moving average of $22.27 with strong upside volume. This move pushed shares of MENT into breakout territory, since the stock took out some near-term overhead resistance levels at $22.82 to $22.92. Shares of MENT also flirted with a new 52-week high on Monday, after the stock challenged its previous 52-week high at $23.72. Market players should now look for a continuation move higher for MENT in the short-term if this stock manages to take out its new 52-week high at $23.88 with high volume.
Traders should now look for long-biased trades in MENT as long as it's trending above $23 or above Monday's low of $22.48, and then once it sustains a move or close above $23.88 with volume that's near or above 554,255 shares. If we get that move soon, then MENT will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $26 to $30.
Gentex
Gentex (GNTX) designs, develops, manufactures and markets proprietary electro-optic products, including automatic-dimming rearview mirrors for the automotive industry and fire protection products mainly for the commercial building industry. This stock closed up 5.1% at $32.29 in Monday's trading session.
Monday's Volume: 2.32 million
Three-Month Average Volume: 1.07 million
Volume % Change: 155%
From a technical perspective, GNTX spiked sharply higher here and broke out into new 52-week-high territory with above-average volume. This stock has been uptrending strong for the last four months and change, with shares moving higher from its low of $21.18 to its intraday high of $32.59. During that move, shares of GNTX have been consistently making 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 if GNTX can manage to clear its new 52-week high at $32.59 with strong volume.
Traders should now look for long-biased trades in GNTX as long as it's trending above Monday's low of $30.95 or above $30 and then once it sustains a move or close above $32.59 with volume that's near or above 1.07 million shares. If we get that move soon, then GNTX will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $35 to $37.
Bind Therapeutics
Bind Therapeutics (BIND) develops various targeted and programmable therapeutics. This stock closed up 4.4% at $13.47 in Monday's trading session.
Monday's Volume: 307,000
Three-Month Average Volume: 153,197
Volume % Change: 195%
From a technical perspective, BIND spiked sharply higher here and broke out above some near-term overhead resistance at $13.33 with above-average volume. This stock has been uptrending strong for the last month and change, with shares moving higher from its low of $8.36 to its intraday high of $13.66. During that uptrend, shares of BIND have been consistently making 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 if BIND can manage to take out Monday's high of $13.66 with strong volume.
Traders should now look for long-biased trades in BIND as long as it's trending above Monday's low of $12.94 or above its 50-day at $12.12, and then once it sustains a move or close above $13.66 with volume that's near or above 153,197 shares. If we get that move soon, then BIND will set up to re-test or possibly take out its next major overhead resistance levels at $15 to its all-time high at $15.89. Any high-volume move above those levels will then give BIND a chance to tag $17 to $20.
Valeant Pharmaceuticals
Valeant Pharmaceuticals (VRX) is a specialty pharmaceutical company that develops, manufactures and markets a broad range of pharmaceutical products primarily in the areas of neurology, dermatology and branded generics. This stock closed up 3.8% at $110.92 in Monday's trading session.
Monday's Volume: 2.01 million
Three-Month Average Volume: 1.12 million
Volume % Change: 84%
From a technical perspective, VRX spiked sharply higher here right above some near-term support at $105.17 and back above its 50-day moving average of $108.78 with above-average volume. This move is quickly pushing shares of VRX with range of triggering a near-term breakout trade. That trade will hit if VRX manages to take out Monday's high of $111.35 to some more near-term overhead resistance levels at $111.39 to $112.47 with high volume.
Traders should now look for long-biased trades in VRX as long as it's trending above its 50-day at $108.78 or above $107 and then once it sustains a move or close above those breakout levels with volume that's near or above 1.12 million shares. If that breakout hits soon, then VRX will set up to re-test or possibly take out its 52-week high at $115.40. Any high-volume move above $115.40 will then give VRX a chance to tag $120.
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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