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Four Stocks Rising on Big Volume

Roberto Pedone, Contributor
Tuesday, 15 Jan 2013 | 1:19 PM ET
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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 is 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.

Websense is a provider of unified Web, data and email content security solutions that are designed to protect data and users from modern cyber-threats, information leaks, legal liability and productivity loss. This stock was trading up 3.3 percent at $15.48 in recent trading.

Today's Volume: 534,000

Average Volume: 233,516

Volume % Change: 294 percent

Shares of Websense are trending higher today after the company pre-announced fourth-quarter billings that beat its guidance and disclosed a new CEO will lead the firm.

From a technical perspective, Websense is gapping higher here right off some near-term support at $15 with above-average volume. This move has started to push Websense into breakout territory, since the stock is flirting with some near-term overhead resistance at $15.59 to $16.13. At last check, Websense has hit an intraday high of $15.88 and volume is well above its three-month average action of 233,516 shares.

Traders should now look for long-biased trades in Websense as long as it's trending above $15.59 to $16.13 with strong upside volume flows. I would consider any upside volume day that registers near or above its three-month average action of 233,516 shares as bullish. If Websense can maintain that trend, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day of $16.59 to $16.93. Any high-volume move above $16.93 will then put $18 to $19.25 into focus for shares of Websense.

Sears Holdings

Sears Holdings is an integrated retailer with over 3,900 full-line and specialty retail stores in the U.S. and Canada. This stock is trading up 7.6 percent at $44.09 in recent trading.

Today's Volume: 1.67 million

Average Volume: 1.24 million

Volume % Change: 104 percent

From a technical perspective, Sears is ripping higher here right above some near-term support at $40 with above-average volume. This move is quickly pushing Sears within range of triggering a near-term breakout trade. That trade will hit if Sears takes out some near-term overhead resistance levels at $43.78 to $45.43 with high volume. At last check, Sears has hit an intraday high of $44.38 and volume is well above its three-month average action of 1.24 million shares.

Traders should now look for long-biased trades in Sears as long as it's trending above $43.78, and then once it sustains a move or close above $45.43 volume that hits near or above 1.24 million shares. If that breakout triggers soon, then Sears will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day of $47.35 to its 200-day at $49.92.

China Lodging Group

China Lodging Group, an economy hotel chain in China, is trading up 7.4 percent at $19.26 in recent trading.

Today's Volume: 526,000

Average Volume: 97,534

Volume % Change: 685 percent

From a technical perspective, China Lodging Group is ripping higher here and entering new 52-week-high territory with heavy upside volume. This move is coming after China Lodging Group recently pushed into breakout territory, above some key overhead resistance levels at 417.47 to $17.55.

Traders should now look for long-biased trades in China Lodging Group as long as it's trending above today's low of $18.18 to some past overhead resistance at $18.95 with strong upside volume flows. I would consider any upside volume day that registers near or above its three-month average action of 97,534 shares as bullish. If China Lodging Group can maintain that trend, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $22.50 to $24.47.

Fifth & Pacific

Fifth & Pacific, which is engaged in designing and marketing a range of apparel and accessories, operates through four segments: Juicy Couture, Kate Spade, Lucky Brand and Adelington Design Group. This stock is trading up 10.6 percent at $14.21 in recent trading.

Today's Volume: 3.14 million

Average Volume: 1.65 million

Volume % Change: 190 percent

From a technical perspective, Fifth & Pacific is gapping sharply higher here right above its 50-day moving average of $12.23 with monster upside volume. This stock has been uptrending strongly for the last three months, with shares soaring from its low of $9.98 to its intraday high of $14.42. During that move, shares of Fifth & Pacific have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed Fifth & Pacific into breakout territory, since the stock has cleared some past overhead resistance at $14.06.

Traders should now look for long-biased trades in Fifth & Pacific as long as it's trending above today's low of $13.39, and then once it sustains a move or close above $14.06 to $14.42 with volume that hits near or above 1.65 million shares. If Fifth & Pacific can maintain that trend, then this stock will set up to re-test or possibly take out its 52-week high of $15.39. Some possible upside targets off a move above its 52-week high are $17 to $20 in the near future.

Written by Roberto Pedone for TheStreet.com

Additional News: Sear's C-Suite Shuffle

Additional Views: Like-for-like Sales Do Not Indicate Profitability: Expert

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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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