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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.
Rex Energy(REXX - Get Report) is an independent oil and gas company operating in the Appalachian Basin and the Illinois Basin. The stock is trading up 5.5% at $9.98 in recent trading.
Today's Volume: 2.86
Average Volume: 999,994
Volume % Change: 365%
Shares of REXX are soaring today after the company announced a public offering of 7 million shares of common stock at a price of $9.25 per share.
From a technical standpoint, REXX is bouncing big off its
52-week low of $9.29 today with monster volume. As long as this stock can manage to close near its highs of the day, then traders should look for continued upside back towards some near-term overhead
resistance levels at $11 to $11.60 a share.