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.
Omnicom Group
Omnicom Group (OMC), together with its subsidiaries, operates as an advertising, marketing and corporate communications services company in the Americas, Europe, the Middle East, Africa and the Asia pacific. This stock closed up 2.2% to $67.66 in Friday's trading session.
Friday's Volume: 12.28 million
Three-Month Average Volume: 1.81 million
Volume % Change: 670%
From a technical perspective, OMC ripped sharply higher here right above its recent low of $65.43 with heavy upside volume. This stock has been downtrending badly for the last two months, with shares moving lower from its high of $76.69 to its low of $65.43. During that move, shares of OMC have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of OMC are now starting to rebound off $65.43 with volume and it's quickly moving within range of triggering a near-term breakout trade. That trade will hit if OMC manages to take out its 200-day moving average of $68.41 with volume.
Traders should now look for long-biased trades in OMC as long as it's trending above that recent low of $65.43 and then once it sustains a move or close above its 200-day at $68.41 with volume that hits near or above 1.81 million shares. If that breakout hits soon, the OMC will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $70.87 or at $72 to $74.
Gulfport Energy
Gulfport Energy (GPOR) engages in the exploration, development and production of oil and natural gas properties. This stock closed up 2.5% to $60.88 in Friday's trading session.
Friday's Volume: 5.15 million
Three-Month Average Volume: 1.83 million
Volume % Change: 184%
From a technical perspective, GPOR jumped higher here with above-average volume. This stock recently gapped down sharply lower from close to $74 to under $60 with heavy downside volume. Following that move, shares of GPOR are now starting to rebound higher and move within range of triggering a near-term breakout trade. That trade will hit if GPOR manages to take out its 200-day moving average of $61.82 with strong upside volume.
Traders should now look for long-biased trades in GPOR as long as it's trending above Friday's low of $58.90 and then once it sustains a move or close above its 200-day at $61.82 with volume that hits near or above 1.83 million shares. If that breakout hits soon, then GPOR will set up to re-fill some of its previous gap-down-day zone that started just near $74. Some possible upside targets if GPOR gets into that gap with volume are $66 to its 50-day moving average of $69.36.
Net 1 Ueps Technologies
Net 1 Ueps Technologies (UEPS) provides payment solutions and transaction processing services for various industries in South Africa, Korea, Europe and internationally. This stock closed up 8.7% to $10.09 in Friday's trading session.
Friday's Volume: 800,000
Three-Month Average Volume: 203,073
Volume % Change: 280%
From a technical perspective, UEPS gapped up sharply higher here back above both its 50-day moving average of $9.73 and its 200-day moving average of $9.83 with strong upside volume. This move is quickly pushing shares of UEPS within range of triggering a near-term breakout trade. That trade will hit if UEPS manages to take out Friday's high of $10.49 to some more near-term overhead resistance at $10.90 with high volume.
Traders should now look for long-biased trades in UEPS as long as it's trending above Friday's low of $9.94 or above its 50-day at $9.73 and then once it sustains a move or close above those breakout levels with volume that hits near or above 203,073 shares. If that breakout gets underway soon, then UEPS will set up to re-test or possibly take out its nest major overhead resistance levels at $12.75 to its 52-week high at $13.
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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.
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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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