This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
WINDERMERE, Fla. (
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. Many times when above average volume moves into 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'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.
Sanderson Farms(SAFM - Get Report) is a poultry processing company engaged in the production, processing, marketing and distribution of fresh and frozen chicken products. This stock is trading up 7.2% at $50.84 in recent trading.
Today's Volume: 617,000
Average Volume: 306,400
Volume % Change: 171%
From a technical standpoint, SAFM is ripping higher today on big volume back above its 50-day
moving average of $50.03.
Market players should now look for a sustained move and close above some near-term overhead resistance at $51.03 and near its daily highs. If we get that action today, then look for SAFM to challenge its
52-week high of $53.22 in the very near future.
Sanderson Farms is rated
C+ hold by TheStreet Ratings.