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.
>>5 Huge Trades for a Volatile 2013
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.
With that in mind, let's take a look at
several stocks rising on unusual volume today.
(SFUN - Get Report)
This company operates as a real estate Internet portal in China. SouFun has real estate-related content, search services, marketing and listing coverage of over 300 cities across the People's Republic of China. This stock is trading up 2.3% at $24.38 in recent trading.
Today's Volume: 238,000
Average Volume: 259,879
Volume % Change: 103%
From a technical perspective, SFUN is bouncing higher here right above some near-term support at $23.01 with decent volume. This stock has been uptrending strongly for the last five months, with shares moving higher from a low of $10.77 to its recent high of $25.61. During that move, shares of SFUN have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed SFUN within range of triggering a near-term breakout trade. That trade will hit once SFUN takes out some near-term overhead resistance at $25.61 with high volume.
Traders should now look for long-biased trades in SFUN as long as it's trending above $23.01, and then once it sustains a move or close above $25.61 with volume that hits near or above 259,879 shares. If that breakout triggers soon, then SFUN will set up to enter all-time high territory, which is bullish technical price action. Some possible upside targets off that breakout are $28 to $30.