Big stock-price moves in unusually high volume are important signs, because such moves frequently show a breakout or a sell signal. IBD offers a filter precisely for that purpose.
As always, price moves have to be taken in the context of volume. When strong volume accompanies a spike, that is a sign of institutional money coming into the stock. Similarly, when a stock makes a big move down in heavy volume, funds are likely moving out of the stock.
The IBD Stocks On The Move brings price action and volume together by listing stocks that are moving up or down in higher volume than average. You can find the list on the home page of Investors.com, and it is continually updated throughout the session.
Often, this list will be the first place you find a breakout past a buy point or a sell signal.
How To Check Stock Movers
Use Stocks On The Move by going through each stock. When you click on one, the stock’s IBD Ratings are displayed as well as a basic price and volume chart. Use the ratings to decide if the stock has enough qualities to deserve a look.
Use the chart to check if the stock is in a bullish pattern. This requires some chart analysis on your part. Or, you can check recent IBD articles, many of which include a chart analysis to help your evaluation.
A fuller list is available by clicking on “View full list.”
This page includes more research tools, including the IBD Stock Checkup. This tools offers data and a checklist to help investors better understand the stock’s condition and fundamentals.
There’s also links to MarketSmith and IBD Leaderboard if you subscribe to those products.
Recent Stock Movers In The Screen
On Tuesday, Ryanair (RYAAY) rose on heavy buying volume. It was an important stock to check because shares regained the 99.44 buy point of a breakout a few days earlier. The stock closed too extended from a buy zone that goes to 104.30.
Shares spiked over 5% while volume surged over 250% after a strong March-quarter report. The Ireland-based airline reported that sales soared 54% to $2 billion and overshadowed a loss of 72 cents per share.
Also Tuesday, Monday.com (MNDY) also was on the screen with a gain in strong volume. Shares are building a cup base with a buy point of 171.99. Shares rose after strong earnings on May 15. The added gains on Tuesday indicate this is a strong leader to watch.
Earnings disappointment moved Zoom Video (ZM) and BJ’s Wholesale (BJ). Both stocks fell in heavy volume on Tuesday. The action took Zoom below its 50-day moving average — a key sell signal.
Wednesday, Tecnoglass (TGLS) had a huge increase in volume in a sharp price decline. Its chart showed the stock broke below the 50-day moving average, a sell signal.
The Stocks On the Move list also acts as a market barometer. If the up list is shorter than the down list, that would indicate higher selling pressure and a time to pare down your stock positions.
On Tuesday, stocks falling in higher volume totaled 20, while those up in higher volume were merely seven. The market was headed for a down week.
Note that Stocks On The Move is not restricted to market leaders. Stocks with lower ratings or low liquidity may find a spot on a day they make a big move.
Please follow VRamakrishnan on Twitter for more news on the stock market today.
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The post What This Screen Tells About Stock Movers; How Zoom, BJ’s, Others Made It To The List appeared first on Investor’s Business Daily.
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