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.
Taser International
Taser International (TASR) engages in the development, manufacture, and sale of conducted electrical weapons for use in law enforcement, federal, military, corrections, private security, and personal defense markets worldwide. This stock closed up 5% to $18.68 in Friday's trading session.
Friday's Volume: 2.79 million
Three-Month Average Volume: 1.37 million
Volume % Change: 175%
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From a technical perspective, TASR jumped sharply higher here and broke out to new 52-week highs with strong upside volume. This move has pushed shares of TASR outside of its recent range, which saw the stock trend between $14.89 on the downside and $18.52 on the upside. Market players should now look for a continuation move higher in the short-term if TASR can manage to take out Friday's high of $18.88 with strong volume.
Traders should now look for long-biased trades in TASR as long as it's trending above Friday's low of $17.50 or above its 50-day at $16.77 and then once it sustains a move or close above Friday's high of $18.88 with volume that hits near or above 1.37 million shares. If we get that move soon, then TASR will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $23 to $25.
Clovis Oncology
Clovis Oncology (CLVS), a biopharmaceutical company, focuses on acquiring, developing and commercializing anti-cancer agents in the U.S., Europe and internationally. This stock closed up 4.7% at $73.98 in Friday's trading session.
Friday's Volume: 1.13 million
Three-Month Average Volume: 427,665
Volume % Change: %
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From a technical perspective, CLVS jumped sharply higher here with above-average volume This stock has been uptrending strong for the last few weeks, with shares soaring higher from its low of $50.41 to its intraday high on Friday of $74.75. During that uptrend, shares of CLVS 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 CLVS manages to take out Friday's high of $74.75 with high volume.
Traders should now look for long-biased trades in CLVS as long as it's trending above Friday's low of $69.50 and then once it sustains a move or close above Friday's high of $74.75 with volume that hits near or above 427,665 shares. If we get that move soon, then CLVS will set up to re-test or possibly take out its next major overhead resistance levels at $78.72 to $81.94. Any high-volume move above those levels will then give CLVS a chance to tag its 52-week high at $86.29.
GW Pharmaceuticals
GW Pharmaceuticals (GWPH), together with its subsidiaries, engages in the research, development, and commercialization of a range of cannabinoid prescription medicines. This stock closed up 4.1% at $48.94 in Friday's trading session.
Friday's Volume: 565,000
Three-Month Average Volume: 136,197
Volume % Change: 334%
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From a technical perspective, GWPH spiked sharply higher here and entered new all-time-high territory with strong upside volume. This stock has been uptrending incredibly strong over the last four months and change, with shares ripping higher from its low of $10.20 to its intraday high of $49.88. During that uptrend, shares of GWPH 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 GWPH manages to take out Friday's high of $49.88 with high volume.
Traders should now look for long-biased trades in GWPH as long as it's trending above Friday's low of $45 or above $44 and then once it sustains a move or close above $49.88 with volume that hits near or above 136,197 shares. If we get that move soon, then GWPH will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that move are $55 to $60.
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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