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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.
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.
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With that in mind, let's take a look at
several stocks rising on unusual volume today.Chemtura(CHMT - Get Report)
This company manufactures and markets polymer and specialty chemical products. This stock is trading up 3.5% at $17.95 in recent trading.
Today's Volume: 742,000
Average Volume: 546,768
Volume % Change: 107%
Shares of CHMT are trending higher today after the company announced it has sold its Antioxidant and UV Stabilizers business for $200 million to SK Capital Partners.
From a technical perspective, CHMT is bouncing notably higher here right near its 50-day moving average of $16.94 with above-average volume. This move has also pushed CHMT into breakout territory, since the stock has cleared some near-term overhead resistance at $17.69. This action is now pushing CHMT into range of triggering another breakout trade. That trade will hit once CHMT clears some near-term overhead resistance at $18.44 with high volume.
Traders should now look for long-biased trades in CHMT as long as it's trending above its 50-day at $16.94, and then once it sustains a move or close above $18.44 with volume that hits near or above 546,768 shares. If that breakout triggers soon, then CHMT will set up to re-test or possibly take out its next major overhead resistance levels at $18.92 to $19.37. Any move above $19.37 would then send CHMT into all-time high territory, which is bullish technical price action.