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Actionable news in BCEI: BONANZA CREEK ENERGY Inc,

Unusual Volume and a Hot Setup Are Signaling Bonanza Creek Energy Is Ready to Rip

I scan the stock market religiously every night for stocks that are experiencing unusual volume spikes.

Professional investors running mutual funds and hedge funds don't just look at a stock's fundamentals, they also scan the markets for unusual volume activity. Often times, when strong volume hits a stock, it's signaling that a sharp increase in volatility is right around the corner. Depending on the price action that shows up with that volume, the volatility could be bullish for big upside on the right chart setups.

Unusual volume often signals large fund activity by "superinvestors." These types of investors like to get in well before a big trend develops, so it's always a smart idea to scan the market for unusual volume activity across all sectors.

With that in mind, let's take a look at one name that hit my scans for unusual volume and has a hot chart setup developing right now. This setup combined with the unusual volume activity could...