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. >>5 Under-$10 Stocks Poised to Pop Telephone and Data Systems Telephone and Data Systems (TDS - Get Report) is a diversified telecommunications service company with wireless operations. This stock is trading up 4.9% at $23.48 in recent trading. Today's Volume: 854,000 Average Volume: 600,316 Volume % Change: 101% From a technical perspective, TDS is spiking significantly higher here right above some near-term support at $21.68 with above-average volume. This move has started to push shares of TDS back above both its 50-day at $22.76 and its 200-day at $23.17. Shares of TDS are now quickly moving within range of triggering a major breakout trade. That trade will hit if TDS manages to take out some near-term overhead resistance levels at $23.69 to $23.73 and then once it clears more resistance at $24 with high volume. Traders should now look for long-biased trades in TDs as long as it's trending above its 50-day at $22.76, and then once it sustains a move or close above those breakout levels with volume that hits near or above 600,316 shares. If that breakout triggers soon, then TDS will set up to re-test or possibly take out its next major overhead resistance level at $26.99.