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.
Hollysys Automation Technologies
Hollysys Automation Technologies (HOLI) is a provider of automation and control technologies and applications in China. This stock closed up 5.6% to $16.63 in Monday's trading session.
Monday's Volume: 1.42 million
Three-Month Average Volume: 149,486
Volume % Change: 756%
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From a technical perspective, HOLI ripped higher here right off its 50-day moving average of $15.60 with monster upside volume. This move is quickly pushing shares of HOLI within range of triggering a big breakout trade. That trade will hit if HOLI manages to take out Monday's high of $16.78 and then its 52-week high at $17.66 with high volume.
Traders should now look for long-biased trades in HOLI as long as it's trending above its 50-day at $15.60 and then once it sustains a move or close above those breakout levels with volume that hits near or above 149,486 shares. If that breakout hits soon, then HOLI will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $23 to $25.
JinkoSolar
JinkoSolar (JKS) is a solar power product manufacturer. This stock closed up 11.3% at $28.93 in Monday's trading session.
Monday's Volume: 3.08 million
Three-Month Average Volume: 1.49 million
Volume % Change: 137%
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From a technical perspective, JKS ripped sharply higher here into new 52-week-high territory with strong upside volume. This stock has been uptrending strong for the last six months, with shares moving higher from its low of $7.25 to its intraday high of $29.39. During that uptrend, shares of JKS 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 JKS can make a new 52-week high soon.
Traders should now look for long-biased trades in JKS as long as it's trending above Monday's low of $25.58 and then once it sustains a move or close above Monday's high of $29.39 with volume that this near or above 1.49 million shares. If we get that move soon, then JKS 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.
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China Yuchai International
China Yuchai International (CYD) manufactures diesel engines in China. This stock closed up 8.4% at $24.42 in Monday's trading session.
Monday's Volume: 209,000
Three-Month Average Volume: 86,889
Volume % Change: 158%
From a technical perspective, CYD ripped sharply higher here back above its 50-day moving average of $23.76 with above-average volume. This move also pushed shares of CYD into breakout territory, since the stock took out some near-term overhead resistance at $24.35. Traders should now look for a continuation move higher if CYD can manage to take out Monday's intraday high with volume soon.
Traders should now look for long-biased trades in CYD as long as it's trending above Monday's low of $23.27 and then once it sustains a move or close above Monday's high of $24.99 with volume that's near or above 86,889 shares. If we get that move soon, then CYD will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $26.39. Any high-volume move above that level will then give CYD a chance to tag $30 to $33.
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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