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
-- or buying or selling by "superinvestors."
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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.
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(ALLT - Get Report)
provides IP service optimization, monetization and personalization solutions for mobile, fixed and wireless broadband service providers and enterprises. Its products include Allot NetEnforcer and Allot NetXplorer. This stock is trading up 2.6% at $14.22 in recent trading.
Today's Volume: 1.11 million
Average Volume: 766,181
Volume % Change: 143%
This morning's news that
) has agreed to buy
) has triggered a speculative rally in shares of other companies that make IP networking hardware, including
) and Allot.
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From a technical perspective, ALLT is ripping higher here right above some near-term support at $13.32 with above-average volume. This stock has been trending sideways for the last month, with shares moving between $13.15 on the downside and $14.38 on the upside. This move has started to push shares of ALLT above the upper-end of that recent range. At last check, shares of ALLT have hit an intraday high of $14.66 and volume is well above its three-month average action of 766,181 shares.
Traders should now look for long-biased trades in ALLT as long as it's trending above $14.38 to $14.66 with strong upside volume flows. I would consider any upside volume day that registers near or above 766,181 shares as bullish. If ALLT can maintain that trend, then this stock will set up to re-test or possibly take out its next major overhead resistance level at around $16.50. Any high-volume move above $16.50 will then set up ALLT to re-fill some of its previous gap down zone from January that started at $19.42.