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.
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Major moves in volume can signal unusual activity, such as
-- 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.
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With that in mind, let's take a look at
several stocks rising on unusual volume today.
(MTRX - Get Report)
This company provides construction and repair and maintenance services mainly to the energy and energy related industries. This stock is trading up 7.8% at $10.88 in recent trading.
Today's Volume: 271,000
Average Volume: 118,163
Volume % Change: 232%
From a technical perspective, MTRX is surging higher here right off some near-term support at $10.05 and back above its 50-day at $10.79 with above-average volume. This move is quickly pushing MTRX within range of triggering a near-term breakout trade. That trade will hit once MTRX manages to take out some near-term overhead resistance levels at $11.21 to $11.38, and then once it clears $11.67 to $12 with high volume.
Traders should now look for long-biased trades in MTRX as long as it's trending above its 50-day at $10.79, and then once it sustains a move or close above those breakout levels with volume that hits near or above 118,163 shares. If that breakout triggers soon, then MTRX will set up to re-test or possibly take out its next major overhead resistance levels $14.05 to $15.06. The key to testing those levels will be once MTRX takes out $12 with volume, so be watching for that move to trigger soon.