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.
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.
With that in mind, let's take a look at several stocks rising on unusual volume today.
Chipmos Technologies
Chipmos Technologies (IMOS) is a provider of semiconductor testing and assembly services. This stock closed up 6% at $16.23 in Friday's trading session.
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Friday's Volume: 405,000
Three-Month Average Volume: 375,400
Volume % Change: 50%
From a technical perspective, IMOS ripped higher here right off some near-term support at $14.93 with decent upside volume. This stock had has been downtrending badly for the last month, with shares plunging from its high of $20.69 to its recent low of $14.93. During that move, shares of IMOS have been consistently making lower highs and lower lows, which is bearish technical price action. That said, the downside volatility for IMOS looks to have stopped and the stock could be ready to reverse its downtrend and begin a new uptrend.
Traders should now look for long-biased trades in IMOS as long as it's trending above its recent low of $14.93 and then once it sustains a move or close above Friday's high of $16.30 with volume that hits near or above 375,400 shares. If we get that move soon, then IMOS will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $18.14 to $19.28.
Fluidigm
Fluidigm (FLDM) develops, manufactures and markets microfluidic systems for growth markets, such as single-cell genomics, applied genotyping and sample preparation for targeted sequencing and agricultural biotechnology industries. This stock closed up 9.8% at $19.55 in Friday's trading session.
Friday's Volume: 430,000
Three-Month Average Volume: 96,902
Volume % Change: 375%
From a technical perspective, FLDM gapped up sharply here and broke out above some near-term overhead resistance at $18.54 with heavy upside volume. This move also pushed shares of FLDM into new 52-week-high territory, since the stock took out $19.96 before closing at $19.55. Shares of FLDM are now trending within range of triggering a major breakout trade. That trade will hit if FLDM manages to take out Friday's high of $20.04 and then once it clears its all-time high of $20.20 with high volume.
Traders should now look for long-biased trades in FLDM as long as it's trending above Friday's low of $18.52 and then once it sustains a move or close above those breakout levels with volume that's near or above 96,902 shares. If that breakout triggers soon, then FLDM will set up to enter new 52-week- and all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $25 to $30.
PDF Solutions
PDF Solutions (PDFS) provides infrastructure technologies and services to improve yield and optimize performance of integrated circuits. This stock closed up 2.6% at $21.51 in Friday's trading session.
Friday's Volume: 543,000
Three-Month Average Volume: 112,159
Volume % Change: 393%
From a technical perspective, PDFS trended up here right above some near-term support at $20.50 and into new 52-week-high territory with above-average volume. This stock has been uptrending strong for the last three months, with shares moving higher from its low of $14.95 to its intraday high on Friday of $21.64. During that move, shares of PDFS have been consistently making mostly higher lows and higher highs, which is bullish technical price action. That move has also been accompanies by heavy upside volume flows since mid-July.
Traders should now look for long-biased trades in PDFS as long as it's trending above some near-term support at $20.50 or above its 50-day at $19.06 and then once it sustains a move or close above Friday's high of $21.64 with volume that's near or above 112,159 shares. If we get that move soon, then PDFS will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $25 to $28.
Ellie Mae
Ellie Mae (ELLI), an electronic mortgage origination network in the U.S, closed up 16% at $28 in Friday's trading session.
Friday's Volume: 2.17 million
Three-Month Average Volume: 468,756
Volume % Change: 372%
Shares of ELLI skyrocketed higher on Friday after the company reported a profit and met Wall Street's expectations and beat the revenue expectation.
From a technical perspective, ELLI soared higher here right above both its 50-day moving average of $23.64 and its 200-day moving average of $23.71 with heavy upside volume. This move sent shares of ELLI into breakout territory, since the stock took out some key overhead resistance levels at $25.39 to $25.75 and then above more resistance at $26.34. This move also pushed shares of ELLI into new 52-week high territory, which is bullish technical price action. Shares of ELLI are now starting to move within range of triggering another major breakout trade. That trade will hit if ELLI manages to take out Friday's high of $28.100 and then once it clears its three-year high at $30.59 with high volume.
Traders should now look for long-biased trades in ELLI as long as it's trending above those breakout levels of $26.34 to $25.75 and then once it sustains a move or close above those breakout levels with volume that's near or above 468,756 shares. If that breakout triggers soon, then ELLI will set up to enter new 52-week- and three-year-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $35 to $40.
Web.com Group
Web.com Group (WWWW) is a provider of a full line of Internet services for small- to medium-sized businesses and is a domain name registrar. This stock closed up 2.8% at $28.19 in Friday's trading session.
Friday's Volume: 1.70 million
Three-Month Average Volume: 518,784
Volume % Change: 256%
Shares of WWWW spiked higher on Friday after the company said it earned 51 cents per share in the second quarter, up 34% from the year-earlier quarter, and beat analyst estimates by 2 cents. Non-GAAP revenue rose 8% to $131.4 million vs. analysts' estimates of $130.6 million. The company also raised its full-year revenue guidance by about $3 million to a range of $531 million to $534 million, vs. $408 million last year.
From a technical perspective, WWWW trended up here above some near-term support levels at $26 to $25.22 and into new 52-week-high territory above $28.25 with above-average volume. This stock has been uptrending strong for the last three months, with shares soaring higher from its low of $15.87 to its intraday high of $29.48. During that move, shares of WWWW have been consistently making higher lows and higher highs, which is bullish technical price action.
Traders should now look for long-biased trades in WWWW as long as it's trending above Friday's low of $26.78 or above $26 and then once it sustains a move or close above Friday's high of $29.48 with volume that's near or above 518,784 shares. If we get that move soon, then WWWW 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.
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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