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.
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.>>5 Rocket Stocks to Buy Now With that in mind, let's take a look at several stocks rising on unusual volume today. AOL AOL ( AOL) is s a global Web services company whose business consists of online content, products and services that it offers to consumers, publishers and advertisers. This stock closed up 5.3% at $37.08 in Wednesday's trading session. Wednesday's Volume: 2.61 million
Three-Month Average Volume: 1.32 million
Volume % Change: 155% >>5 Dogs of the Dow to Stomp the Market From a technical perspective, AOL spiked sharply higher here right off its 200-day moving average of $35.71 with strong upside volume. This move pushed shares of AOL into breakout territory, since the stock took out some near-term overhead resistance at $36.30. Shares of AOL are now quickly moving within range of triggering another big breakout trade. That trade will hit if AOL manages to clear Wednesday's high of $37.34, and then once it takes out some past overhead resistance at $38.40 to $38.48 with high volume. Traders should now look for long-biased trades in AOL as long as it's trending above its 200-day at $35.71 or above $35 and then once it sustains a move or close above those breakout levels with volume that's near or above 1.32 million shares. If that breakout triggers soon, then AOL will set up to re-test or possibly take out its next major overhead resistance levels at $42.12 to its 52-week high at $43.93.