WINDERMERE, Fla. (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.With that in mind, let's take a look at several stocks rising on unusual volume today. Geo Group (GEO) Geo Group (GEO) is a provider of government-outsourced services specializing in the management of correctional, detention and mental health facilities in the United States, Australia, South Africa, the United Kingdom and Canada. This stock is trading up 4.4% at $28.24 in recent trading. Today's Volume: 557,000 Average Volume: 393,703 Volume % Change: 149% Shares of GEO are spiking higher today after the company reported an increase in third quarter revenue, but a dip in quarterly profits. From a technical perspective, GEO is ripping higher here back above its 50-day moving average of $27.57 with above average volume. This move is quickly pushing GEO within range of triggering a major breakout trade. That trade will hit once GEO manages to take out some near-term overhead resistance at $28.62 with high volume. Traders should now look for long-biased trades in GEO as long as it's trending above its 50-day at $27.57, and then once it sustains a move or close above $28.62 with volume that hits near or above 393,703 shares. If that breakout triggers soon, then GEO will set up to trend north of $30 in the near future.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV