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.
HSN
HSN (HSNI) is an interactive multichannel retailer. This stock closed up 1% to $51.01 in Wednesday's trading session.
Wednesday's Volume: 771,000
Three-Month Average Volume: 200,651
Volume % Change: 214%
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From a technical perspective, HSNI bounced modestly higher here right off some near-term support at $50.03 with above-average volume. This stock has been downtrending badly for the last two months, with shares plunging lower form its high of $64.41 to its recent low of $50.03. During that move, shares of HSNI have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of HSNI have now entered oversold territory, since its current relative strength index reading is 27.8. Oversold can always get more oversold, but it's also an area where a stock can rebound sharply higher from.
Traders should now look for long-biased trades in HSNI as long as it's trending above that recent low of $50.03 and then once it sustains a move or close above Wednesday's high of $51.21 with volume that hits near or above 200,651 shares. If we get that move soon, then HSNI will set up to re-test or possibly take out its next major overhead resistance levels at $54 to $56.
SouFun
SouFun (SFUN) operates a real estate Internet portal in China, providing marketing, listing and other value-added services and products related to real estate and home furnishing. This stock closed up 7.4% to $47.92 in Wednesday's trading session.
Wednesday's Volume: 2.20 million
Three-Month Average Volume: 1.04 million
Volume % Change: 177%
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From a technical perspective, SFUN bounced sharply higher here right above its 50-day moving average of $43.92 with strong upside volume. This stock has been trending sideways for the last month, with shares moving between $44.11 on the downside and $53.77 on the upside. Shares of SFUN are now starting to rebound off the lower-end of its range and trend within distance of triggering a big breakout trade. That trade will hit if SFUN manages to take out some near-term overhead resistance levels at $50.97 to its 52-week high at $53.77 with high volume.
Traders should now look for long-biased trades in SFUN as long as it's trending above its 50-day at $43.92 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.04 million shares. If that breakout hits soon, then SFUN will set up to enter new 52-week-high territory above $53.77, which is bullish technical price action. Some possible upside targets off that breakout are $60 to $65.
Sierra Wireless
Sierra Wireless (SWIR) is engaged in the development of wireless technologies and solutions. This stock closed up 6.3% at $17.59 in Wednesday's trading session.
Wednesday's Volume: 805,000
Three-Month Average Volume: 247,612
Volume % Change: 175%
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From a technical perspective, SWIR ripped sharply higher here right above some near-term support at $16.10 with above-average volume. This stock has been uptrending strong for the last month, with shares skyrocketing higher from its low of $12.02 to its recent high of $18.28. During that move, shares of SWIR have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of SWIR within range of triggering a near-term breakout trade. That trade will hit if SWIR manages to take out its 52-week high at $18.28 with high volume.
Traders should now look for long-biased trades in SWIR as long as it's trending above Wednesday's low of $16.41 or above more support at $16.10 and then once it sustains a move or close above its 52-week high at $18.28 with volume that hits near or above 247,612 shares. If that breakout hits soon, then SWIR will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $22 to $25.
Audience
Audience (ADNC) is a provider of voice and audio solutions that improve voice quality and the user experience in mobile devices. This stock closed up 5.4% to $12.25 in Wednesday's trading session.
Wednesday's Volume: 272,000
Three-Month Average Volume: 178,138
Volume % Change: 115%
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From a technical perspective, ADNC jumped higher here and broke out above some near-term overhead resistance at $11.83 with above-average volume. This stock has been uptrending strong for the last two months, with shares soaring higher from its low of $9.25 to its intraday high of $12.41. During that uptrend, shares of ADNC have been consistently making higher lows and higher highs, which is bullish technical price action.
Traders should now look for long-biased trades in ADNC as long as it's trending above Wednesday's low of $11.70 or above its 50-day at $10.92 and then once it sustains a move or close above Wednesday's high of $12.41 and its 200-day at $13.01 with volume that hits near or above 178,138 shares. If we get that move soon, then ADNC will set up to re-test or possibly take out its next major overhead resistance levels at $14 to $14.50. Any high-volume move above those levels will then give ADNC a chance to tag $15 to $16.
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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