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3 Stocks Jumping on Abnormally High Volume

Timothy A. Clary | AFP | Getty Images

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. When above-average volume moves into an equity, it often 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.


Alliance Resource Partners

This company is a producer and marketer of coal mainly to major United States utilities and industrial users. This stock is trading up 2.2 percent at $57.33 in recent trading.

Today's Volume: 87,000

Average Volume: 111,903

Volume % Change: 50 percentFrom a technical perspective, Alliance Resource Partners is trending higher here right above some near-term support at $53.10 with decent volume. This move is quickly pushing shares of Alliance Resource Partners within range of triggering a major breakout trade. That trade will hit once Alliance Resource Partners takes out its 50-day at $58.42 and its 200-day at $58.53 and then once it clears more overhead resistance at $58.73 with high volume.

Traders should now look for long-biased trades in Alliance Resource Partners as long as it's trending above today's low of $55.49, and then once it sustains a move or close above those breakout levels with volume that hits near or above 111,903 shares. If that breakout triggers soon, then Alliance Resource Partners will set up to re-test or possibly take out its next major overhead resistance levels at $61 to $62.

SPX Corporation

This is a global multi-industry manufacturing company, which offers highly specialized engineered solutions to solve critical problems for customers. This stock is trading up 1.9 percent at $68 in recent trading.

Today's Volume: 1.06 million

Average Volume: 964,821

Volume % Change: 111 percent

From a technical perspective, SPX Corporation is bouncing higher here right off its 50-day moving average of $66.52 and back above its 200-day moving average of $67.83 with above average volume. This stock has been uptrending for the last few weeks, with shares moving higher from a low of $60.61 to its intraday high of $68.99. During that move, shares of SPX Corporation have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed SPX Corporation within range of triggering a major breakout trade. That trade will hit once SPX Corporation manages to clear some near-term overhead resistance levels at $69.11 to $70.88 and then once it takes out more overhead resistance at $71.36 with high volume.

Traders should now look for long-biased trades in SPX Corporation as long as it's trending above its 50-day at $66.52 or its 200-day at $68.01, and then once it sustains a move or close above those breakout levels with volume that hits near or above 964,821 shares. If that breakout hits soon, then SPX Corporation will set up to retest or possibly take out its next major overhead resistance levels at $76.04 to $78.50.

Cheniere Energy

This company is engaged in the energy business generally, including its publicly traded subsidiary partnership, Cheniere Energy Partners. This stock is trading up 3.3 percent at $18.47 in recent trading.

Today's Volume: 3.67 million

Average Volume: 3.98 million

Volume % Change: 50 percent

From a technical perspective, Cheniere Energy is bouncing higher here right above some near-term support at $17 to $16.90 with decent upside volume flows. This stock has been uptrending strongly for the last month and change, with shares soaring from a low of $13.85 to its intraday high of $18.46. During that move, shares of Cheniere Energy have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now started to push Cheniere Energy into breakout territory, since the stock is starting to move above some near-term overhead resistance at $18.28.

Traders should now look for long-biased trades in Cheniere Energy as long as it's trending above $16.90, and then once it sustains a move or close above some breakout levels at $18.28 to $18.92 with volume that hits near or above 3.98 million shares. If that breakout triggers soon, then Cheniere Energy will set up to enter new 52-week high territory once it clears $18.92, which would be bullish technical price action. Some possible upside targets off that breakout are $20 to $23.

— Written by Roberto Pedone, Independent Contributor for TheStreet.com

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Disclosures:

TheStreet does not permit any employees on its editorial staff to individually hold positions in individual stocks, though they are permitted to own stock in TheStreet.

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