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 recently.
ChipMOS Technologies
ChipMOS Technologies (IMOS), through its subsidiaries, provides semiconductor testing and assembly services and memory and logic/mixed-signal products. This stock closed up 3% at $22.55 in Wednesday's trading session.
Wednesday's Volume: 517,000
Three-Month Average Volume: 265,734
Volume % Change: 117%
From a technical perspective, IMOS spiked notably higher here right off its 50-day moving average of $22.03 with above-average volume. This stock has been uptrending a bit over the last few weeks, with shares moving higher from its low of $20.08 to its intraday high of $23.20. During that move, shares of IMOS have been consistently making higher lows and higher highs, which is bullish technical price action. Market players should now look for a continuation move to the upside in the short-term if IMOS manages to take out Wednesday's intraday high of $23.20 to its 52-week high of $24.09 with strong upside volume flows.
Traders should now look for long-biased trades in IMOS as long as it's trending above its 50-day at $22.03 or above $21 and then once it sustains a move or close above $23.20 to $24.09 with volume that hits near or above 265,734 shares. If that move gets underway soon, then IMOS will set up to enter new 52-week-high territory above $24.09, which is bullish technical price action. Some possible upside targets off that move are $25 to $30.
Osiris Therapeutics
Osiris Therapeutics (OSIR), a stem cell company, focuses on the development and marketing products to treat medical conditions in wound care, orthopedic and sports medicine markets. This stock closed up 9.1% at $16.37 in Wednesday's trading session.
Wednesday's Volume: 1.06 million
Three-Month Average Volume: 278,990
Volume % Change: 290%
From a technical perspective, OSIR exploded higher here back above its 200-day moving average of $15.63 and into breakout territory above some near-term overhead resistance at $15.76 with heavy upside volume. This stock has been uptrending strong for the last month, with shares moving higher from its low of $11.800 to its intraday high of $16.74. During that uptrend, shares of OSIR have been consistently making higher lows and higher highs, which is bullish technical price action. Market players should now look for a continuation move to the upside if shares of OSIR manage to take out Wednesday's intraday high of $16.74 with strong volume.
Traders should now look for long-biased trades in OSIR as long as it's trending above its 200-day at $15.63 or above Wednesday's low of $14.62 and then once it sustains a move or close above $16.74 with volume that's near or above 278,990 shares. If that move triggers soon, then OSIR will set up to re-test or possibly take out its next major overhead resistance levels at $17.50 to $17.60, or even $18.41 to $19.75.
KEYW Holding
KEYW Holding (KEYW), through its subsidiaries, provides mission-critical cybersecurity, cyber superiority and geospatial intelligence solutions to the U.S. Government defense, intelligence and national security agencies, and commercial enterprises. This stock closed up 3% at $10.82 in Wednesday's trading session.
Wednesday's Volume: 1.19 million
Three-Month Average Volume: 578,205
Volume % Change: 145%
From a technical perspective, KEYW spiked higher here right off its 52-week low of $10.08 with above-average volume. This stock has been downtrending badly for the last two months and change, with shares moving lower from its high of $23.09 to its 52-week low of $10.08. During that move, shares of KEYW have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of KEYW now look ready to reverse that downtrend and possibly enter a new uptrend since the stock is coming off those levels with volume. Market players should now look for a continuation move to the upside in the short-term if KEYW can manage to clear Wednesday's intraday high of $10.94 to some more near-term overhead resistance at $11.28 with high volume.
Traders should now look for long-biased trades in KEYW as long as it's trending above its 52-week low of $10.08 and then once it sustains a move or close above $10.94 to $11.28 with volume that's near or above 578,205 shares. If that move starts soon, then KEYW will set up to rebound back towards its next major overhead resistance levels at $13.35 to its 200-day moving average of $14.41. Any high-volume move above those levels will then give KEYW a chance to tag its next major overhead resistance levels at $15.20 to its 50-day moving average of $16.26.
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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