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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."
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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.>>5 Stocks Under $10 Set to ExplodeECA Marcellus TrustECA Marcellus Trust(ECT) owns royalty interests in approximately eight producing horizontal natural gas wells producing from the Marcellus Shale formation, together with six additional wells that are undergoing completion operations. This stock is trading up 7.4% at $18.69 in recent trading.
Today's Volume: 321,000
Average Volume: 113,713
Volume % Change: 441%
From a technical perspective, ECT is ripping higher here right off its 200-day moving average of $17.41 with above-average volume. This move has started to push shares of ECT into breakout territory, since the stock has taken out some near-term overhead resistance levels at $18.40 to $18.48.
Traders should now look for long-biased trades in ECT as long as it's trending above $18.40 with strong upside volume flows. I would consider any upside volume day that registers near or above its three-month average action of 113,713 shares. If ECT can maintain that trend, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $19.50 to $19.91 and at $20.17 to $20.36. Any high-volume move above $20.36 will then put $22 to $23 into range for shares of ECT.