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.
With that in mind, let's take a look at
several stocks rising on unusual volume today.
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(CIT - Get Report)
This company provides commercial financing and leasing products and other services to small and middle market businesses across a wide variety of industries. This stock is trading up 2% at $42.88 in recent trading.
Today's Volume: 3.98 million
Average Volume: 1.36 million
Volume % Change: 282%
Shares of CIT are trending higher today after news broke that the company has explored a possible sale of itself over the past year-and-a-half to a number of banks.
From a technical perspective, CIT is moving higher here right above some near-term support at $41.62 with above-average volume. This stock has been uptrending strong for the last three months, with shares soaring from its low of $36.02 to its recent high of $43.90. During that move shares of CIT have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of CIT within range of triggering a near-term breakout trade. That trade will hit if CIT manages to take out some near-term overhead resistance at $43.90 and some past resistance at $44.88 with high volume.
Traders should now look for long-biased trades in CIT as long as it's trending above its $41.62, and then once it sustains a move or close above $43.90 to $44.88 with volume that hits near or above 1.36 million shares. If that breakout triggers soon, then CIT will set up to re-test or possibly take out its next major overhead resistance levels at $48 to $49.57.