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.
Bitauto
Bitauto (BITA) is a provider of Internet content and marketing services for China's automotive industry. This stock closed up 1.2% at $15.11 in Monday's trading session.
Monday's Volume: 520,000
Three-Month Average Volume: 191,020
Volume % Change: 275%
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From a technical perspective, BITA trended modestly higher here right above some near-term support at $14 with heavy upside volume. This move is quickly pushing shares of BITA within range of triggering a major breakout trade. That trade will hit if BITA manages to take out some near-term overhead resistance levels at $15.75 to $15.80 with high volume.
Traders should now look for long-biased trades in BITA as long as it's trending above some near-term support at $14 or $13 and then once it sustains a move or close above those breakout levels with volume that's near or above 191,020 shares. If that breakout hits soon, then BITA will set up to re-test or possibly take out its 52-week high at $18.10. Any high-volume move above $18.10 will then give BITA a change to tag and trend north of $20.
NetSuite
NetSuite (N) provides cloud-based financials/enterprise resource planning software suites in the U.S. and internationally. This stock closed up 1.5% at $98.08 in Monday's trading session.
Monday's Volume: 542,000
Three-Month Average Volume: 332,578
Volume % Change: 110%
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From a technical perspective, N jumped modestly higher here right above some near-term support at $95 with above-average volume. This move is starting to push shares of N within range of triggering a near-term breakout trade. That trade will hit if N manages to take out some near-term overhead resistance at $100 to its 52-week high at $100.49 with high volume.
Traders should now look for long-biased trades in N as long as it's trending above some near-term support at $95 or above its 50-day at $93.82 and then once it sustains a move or close above those breakout levels with volume that's near or above 332,578 shares. If that breakout hits soon, then N will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $110 to $115.
OmniVision Technologies
OmniVision Technologies (OVTI) designs, develops and markets semiconductor image-sensor devices. This stock closed up 9.4% at $18.38 in Monday's trading session.
Monday's Volume: 3.66 million
Three-Month Average Volume: 1.27 million
Volume % Change: 282%
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From a technical perspective, OVTI exploded sharply higher here right above some near-term support level at $16.50 to $16 and back above its 50-day moving average of $17.48 with strong upside volume. This move also pushed shares of OVTI into breakout territory, since the stock took out some near-term overhead resistance levels at $17.55 to $18. Shares of OVTI are now quickly moving within range of triggering another big breakout trade. That trade will hit if OVTI manages to take out more near-term resistance at $18.94 with high volume.
Traders should now look for long-biased trades in OVTI as long as it's trending above its 50-day at $17.48 and then once it sustains a move or close above $18.94 with volume that's near or above 1.27 million shares. If that breakout hits soon, then OVTI will set up to re-test or possibly take out its 52-week high at $20.48. Any high-volume move above $20.48 will then put its next major overhead resistance levels at $21.11 to $22 into range for shares of OVTI.
Level 3 Communications
Level 3 Communications (LVLT) is a facilities-based provider of a broad range of integrated communications services. This stock closed up 0.48% at $22.96 in Monday's trading session.
Monday's Volume: 3.50 million
Three-Month Average Volume: 1.50 million
Volume % Change: 235%
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From a technical perspective, LVLT trended modestly higher here right above some near-term support at $22.50 with heavy upside volume. This stock has been uptrending for the last two months, with shares moving higher from its low of $19.71 to its recent high of $23.49. During that uptrend, shares of LVLT have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of LVLT within range of triggering a near-term breakout trade. That trade will hit if LVLT manages to take out some near-term overhead resistance at $23.49 to $24.76 with high volume.
Traders should now look for long-biased trades in LVLT as long as it's trending above its 50-day at $21.77 or its 200-day at $21.53 and then once it sustains a move or close above those breakout levels with volume that's near or above 1.50 million shares. If that breakout hits soon, then LVLT will set up to re-test or possibly take out its 52-week high at $25.26 to more past resistance at $25.62. Any high-volume move above those levels will then give LVLT a chance to tag its next major overhead resistance level at $28.
Kongzhong
Kongzhong (KONG) provides digital entertainment services in the People's Republic of China. This stock closed up 5.8% at $10.30 in Monday's trading session.
Monday's Volume: 449,000
Three-Month Average Volume: 258,498
Volume % Change: 85%
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From a technical perspective, KONG ripped sharply higher here right above some near-term support at $8.97 with above-average volume. This stock has been basing and trending sideways for the last month, with shares moving between $8.97 on the downside and $10.92 on the upside. Shares of KONG are now starting to move within range of triggering a major breakout trade above the upper-end of its recent sideways trading chart pattern. That breakout will hit if KONG manages to take out some near-term overhead resistance levels at $10.50 to its 52-week high at $10.92 with high volume.
Traders should now look for long-biased trades in KONG as long as it's trending above some key near-term support levels at $9.50 or above $8.97 and then once it sustains a move or close above those breakout levels with volume that's near or above 258,498 shares. If that breakout hits soon, then KONG will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are $14 to $15.
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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.
Follow Stockpickr on Twitter and become a fan on Facebook.
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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